Tether Collaborates Extensively with FBI & Secret Service

TL;DR

• Tether’s C.E.O., Paulo Ardoino, says the stablecoin issuer will become the world-class partner of the U.S. to expand dollar hegemony.
• The stablecoin issuer has frozen wallets on the U.S. sanction list. It claims to have frozen 435 million USDT so far.

Tether Unveils Collaboration with D.O.J., Secret Service & F.B.I.

In a strategic move, Tether, the platform behind USDT stablecoin, is enlisting the support of U.S. authorities for the platform. 

The move will prevent misuse of its digital currency. Tether has released letters that outline its commitment to security.  In addition, it will foster working relationships with law enforcement. 

These letters were sent to the U.S. Senate Committee on Banking, Housing, and Urban Affairs and the U.S. House Financial Services Committee.

They emphasized the platform’s plan to prevent malicious entities from exploiting its stablecoin.

This includes onboarding the Secret Service and the F.B.I. into Tether’s platform.  Moreover, they highlighted efforts to prevent the use of USDT for nefarious means.

Tether has made steps to ensure it has strong Know-Your-Customer (KYC) and anti-money laundering (AML) programs. 

The initiative is spearheaded by the recently appointed C.E.O., Paolo Ardoino.

Tether Freezes $435M USDT for U.S. Government Agencies

The alliance comes shortly after Tether implemented a wallet-freezing policy on December 1, 2023.

The historic milestone froze all wallets associated with the Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) sanction list.

Paolo Ardoino admitted that this measure is a definitive move to help protect Tether users and the integrity of the stablecoin ecosystem.

Moreover, Tether will start offering real-time data concerning the reserves supporting it to ensure transparency. 

In addition, Tether claims collaborating with U.S. law enforcement has yielded results. The stablecoin issuer says the partnership has helped the D.O.J., U.S. Secret Service, and F.B.I. freeze 326 wallets.

The frozen wallets control 435 million USDT. However, the latest frozen wallets contain far fewer tokens than the sum stated.

Far from that, it has also helped the D.O.J. nub bad actors and assist in victims’ recovery.

By expanding our sanctions controls to the secondary market, we are setting a precedent in the industry, leading with foresight and vigilance.

Tether noted.

Ardoino reiterated that Tether’s processes would allow the three government agencies to work in tandem with the platform.

Letter Addresses U.S. Senators’ Call for Extensive Investigation

These letters directly respond to Senator Cynthia Lummis’s letter to U.S. Attorney General Merrick Garland in Oct. 2023.

Tether was under scrutiny for its role in potentially facilitating illegal activities, which caught the attention of the U.S. senators.

Lummis’s letter has urged the D.O.J. to evaluate the extent to which Binance and Tether were provided with material support.

And resources that may support terrorism through the violations of imposed sanction laws and the Bank of Secrecy Act (BSA).

After pleading guilty to BSA violations, Binance had a $4.3 billion settlement with the DOJ. The agreement also made Binance’s CEO resign to resolve the investigation with the US authorities. 

Tether’s recent proactive moves to legality and compliance are a step toward transparency.

However, there are still ongoing concerns in the crypto community about potential digital currencies being misused in illegal activities.

What do you think about Tether’s collaboration with U.S. government agencies?