Tether Strengthens Crime-Fighting Efforts with FBI and Secret Service Alliance

Tether's Proactive Approach Against Crypto Crimes

In a strategic move, Tether, the entity behind the USDT stablecoin, has enlisted the support of U.S. law enforcement giants, the FBI and the Secret Service, to combat the misuse of its digital currency. Paolo Ardoino, Tether's recently appointed CEO, is spearheading this initiative. This decision comes in the wake of Tether's implementation of a policy that freezes wallets associated with individuals on the Specially Designated Nationals (SDN) list. This policy has already resulted in the freezing of over 200 wallets.

Ardoino, in a communication to U.S. legislators, elaborated on Tether's plan to prevent its stablecoins from being exploited by malicious entities. This includes the recent collaboration with prominent law enforcement agencies.

Tether's Letter to U.S. Committees Signals Strong Stance Against Illicit Use

Tether has communicated its firm stance against the illegal usage of its stablecoins in letters to the U.S. Senate Committee on Banking, Housing, and Urban Affairs and the U.S. House Financial Services Committee. Emphasizing its commitment to constructing a durable and resilient infrastructure, Tether has assured full cooperation with law enforcement in combating terrorist financing and other illegal activities.

The company has played a significant role in assisting the U.S. Department of Justice, the Secret Service, and the FBI. Tether’s collaboration has led to the freezing of 326 wallets, with a combined total exceeding $435 million.

U.S. Senators Call for Increased Scrutiny of Tether

The issue of Tether's compliance and its role in potentially facilitating illicit activities has caught the attention of U.S. Senators. Senator Cynthia Lummis and Representative French Hill have expressed concerns to the U.S. Attorney General, urging a closer examination of Tether. They allege that Tether, along with Binance, has inadvertently supported crypto-funded terrorism and violated sanctions laws and the Bank Secrecy Act. The Senators highlight the need for thorough investigations into these allegations.

While Tether's recent measures demonstrate a proactive approach to legality and compliance, they also underscore ongoing concerns about the potential for digital currencies to be misused in illicit activities.