Tether, the company behind the widely-used USDT stablecoin, has taken a proactive approach in its collaboration with key U.S. law enforcement agencies. The company recently disclosed its ongoing partnerships with entities such as the Secret Service and the Federal Bureau of Investigation (FBI) in detailed letters sent to prominent U.S. legislative committees.
Tether’s actions align with its broader efforts to uphold the integrity of the cryptocurrency industry. Under the direction of Paolo Ardoino, Tether’s newly appointed CEO, the company has intensified its focus on preventing the misuse of its stablecoins in unlawful activities. The letters, which were sent to the U.S. House Financial Services Committee and the U.S. Senate Committee on Banking, Housing, and Urban Affairs, emphasize Tether’s dedication to maintaining safety and security in the crypto space.
Senator Cynthia Lummis, a well-known advocate for cryptocurrency within the Senate, received copies of these letters. They were also sent to the chairs and ranking members of the aforementioned committees, showcasing Tether’s commitment to transparency and legal compliance.
Tether’s Measures Against Misuse and Crypto-Terrorism
Tether’s latest correspondence highlights its methodical approach to prevent the exploitation of its USDT stablecoin. The company reports having frozen 326 wallets, which held a total of 435 million USDT, as part of its collaboration with law enforcement. This action includes adhering to sanctions from the U.S. Office of Foreign Asset Controls (OFAC) by freezing 161 Ethereum wallets, though currently, 150 of these do not contain any USDT.
In addition to working closely with the Department of Justice and the U.S. Secret Service, Tether is in the process of establishing ties with the FBI. These partnerships are a testament to Tether’s commitment to combatting financial crimes and maintaining the integrity of its operations.
This move by Tether comes in the wake of accusations directed at it and Binance in a letter dated October 26, penned by Senator Cynthia M. Lummis and Congressman J. French Hill. The letter to U.S. Attorney General Merrick Garland suggested that these entities facilitated crypto-funded terrorism by not adhering to sanctions laws and the Bank Secrecy Act. It accused them of insufficient screenings despite awareness of their stablecoins being used for extremist activities.
In response, Ardoino has reiterated Tether’s steadfast commitment to supporting law enforcement and aiding victims in recovery efforts. The company strongly condemns the use of USDT or any cryptocurrency for illicit purposes and pledges full cooperation with global law enforcement agencies to address these concerns.