Tether, the stablecoin issuer, has taken precautionary measures by freezing 41 wallets controlled by individuals listed on the Office of Foreign Assets Control’s (OFAC) Specially Designated Nationals (SDN) list. This action follows Tether’s commitment to promoting a safer stablecoin ecosystem and addressing illicit activities.
Tether described the freezing of the wallets as a precautionary measure in a blog post. It is worth noting that some of the wallets had used the coin-mixing service, Tornado Cash, within the last six months, according to on-chain data analysis. The freezing of one wallet is associated with the $625 million Ronin Bridge attack executed by the North Korean hacking group Lazarus.
Tether CEO Paolo Ardoino stated that these wallet freezes aim to strengthen the positive usage of stablecoin technology and promote a safer stablecoin ecosystem. This is not the first time Tether has taken action against wallets linked to illicit activities, as they have previously frozen wallets associated with terrorism, warfare, and human trafficking.
Tether has faced scrutiny and legal challenges in the past, and the freezing of these wallets is a step towards stricter compliance measures. By cooperating with regulatory authorities and ensuring compliance, Tether demonstrates its commitment to operating within the boundaries of the law. Consequently, this action highlights the importance of addressing illicit activities and promoting a secure environment within the stablecoin ecosystem.
Tether’s decision to freeze 41 wallets controlled by individuals on the OFAC SDN list showcases the company’s determination to maintain a compliant and safe stablecoin ecosystem. Through this move, Tether aims to strengthen the positive usage of stablecoin technology and discourage illicit activities. The freezing of wallets associated with sanctioned individuals is in line with Tether’s ongoing efforts to address illegal activities within the stablecoin space. By taking these precautionary measures, Tether sends a message that it is serious about creating a transparent and trusted stablecoin system.