Tether Enhances Security by Targeting OFAC-Listed Wallets
The post Tether Enhances Security by Targeting OFAC-Listed Wallets appeared on BitcoinEthereumNews.com.
Tether, the company behind the prominent stablecoin, has announced a significant policy shift in its approach to regulatory compliance and cooperation with law enforcement agencies. In a recent blog post dated December 9, Tether revealed its initiative to voluntarily freeze wallets associated with individuals or entities on the United States Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) List. This list comprises individuals and companies controlled or owned by sanctioned countries, marking them as entities with whom U.S. persons and firms are generally prohibited from conducting business. Tether Intensifies Efforts Against Crypto Crime Tether’s latest policy, effective since December 1, aims to bolster the security infrastructure surrounding its stablecoin operations. By implementing controls to freeze activities linked to Sanctioned persons on the OFAC’s SDN List, Tether is intensifying its efforts to prevent illicit activities, such as funding terrorism and unauthorized distribution of substances like fentanyl. This move aligns with the broader initiatives of the U.S. Department of the Treasury, which utilizes the SDN List to restrict crypto transactions potentially connected to criminal activities. The voluntary wallet-freezing policy is expected to augment Tether’s security protocols, underscoring the company’s dedication to fostering a secure and compliant stablecoin ecosystem. Paolo Ardoino, CEO of Tether, emphasized the importance of this initiative, stating, “By executing voluntary wallet address freezing of new additions to the SDN List and freezing previously added addresses, we will be able to strengthen the positive usage of stablecoin technology further and promote a safer stablecoin ecosystem for all users.” Decisive Action Against Sanctioned Crypto Addresses This policy marks a notable shift in Tether’s approach to regulatory compliance. In August 2022, Tether declared that it would not proactively freeze Tornado Cash addresses sanctioned by the OFAC unless explicitly directed by law enforcement. Tornado Cash, a decentralized cryptocurrency mixer, has been…
Filed under: News - @ December 10, 2023 5:10 am