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Tether, the company behind the USDT stablecoin, has released letters addressed to the U.S. Senate Committee on Banking, Housing, and Urban Affairs, as well as the U.S. House Financial Services Committee, highlighting its commitment to security and collaboration with law enforcement.
In the letters, Tether CEO Paolo Ardoino, who recently assumed leadership, emphasized the company’s action to disable Tether tokens in wallets associated with the Office of Foreign Assets and Controls (OFAC) sanction list. Tether claims to have cooperated with the Department of Justice, U.S. Secret Service, and Federal Bureau of Investigation (FBI) in freezing 326 wallets controlling a total of 435 million USDT.
Tether CEO Paolo Ardoino emphasized the company’s decision to disable Tether tokens held in wallets associated with the Office of Foreign Assets and Controls (OFAC) sanction list in a recent letter to legislators. Despite claims of assisting the Department of Justice, U.S. Secret Service, and Federal Bureau of Investigation (FBI) in freezing 326 wallets controlling a total of 435 million USDT, it was later revealed that the recently frozen wallets contain a smaller number of tokens.
Ardoino also disclosed that Tether has recently onboarded the United States Secret Service onto its platform and is in the process of doing the same with the FBI. These partnerships underline Tether’s commitment to collaborating with law enforcement agencies to ensure the integrity and security of its operations.
To foster transparency and maintain an open line of communication, Teth has directed these letters not only to Senator Cynthia Lummis but also to the chairs and ranking members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs and the U.S. House Financial Services Committee. This proactive engagement with legislators underscores Tether’s commitment to providing insights into its collaborations with law enforcement and ongoing initiatives to align with regulatory standards, reinforcing its dedication to integrity and security within the cryptocurrency industry.
Tether Freezes Wallets of Sanctioned Individuals: Details and Token Distribution
Last week, Teth took the initiative to freeze the wallets of individuals sanctioned by the U.S. Office of Foreign Asset Controls (OFAC). The company stated that this move is part of its commitment to preventing potential misuse of its tokens and strengthening security measures through collaboration with global law enforcement and regulators. Blockchain data reveals that Teth froze a total of 161 Ethereum wallets, although 150 of these wallets currently hold no USDT tokens.
💥News Alert : #BNBTC is decentralised 🛡️#Tether is #centralised has frozen $435M #USDT for U.S. DOJ, FBI, and Secret Service
— BLOCKCHAIN CRYPTO ALERTS (@BLOCKCHAINALETS) December 17, 2023
Hodl #BNBTC ⛏️🪙💎#BNBTC #Bitcoin #Binance #BNB #Microstrategy #Saylor #1BTC #ETH #LUNC #DOGE #SHIB #HEX #MATIC #PEPE #LTC https://t.co/V9kIuD7sZA
Among the remaining 11 wallets, over 3.5 million USDT tokens are held, with the majority concentrated in a single address containing 3.4 million tokens. Notably, this address has been associated with a recent hack of the betting platform Stake. Within the wallets holding USDT tokens, two addresses each contain around 20,000 tokens, while another holds nearly 60,000 tokens.
Tether’s Strategic Move: Allocating Profits to Bitcoin to Safeguard Reserves
In May 2023, Tethe unveiled its strategic plan to allocate up to 15% of net realized profits consistently into Bitcoin. This forward-looking initiative aims to safeguard Tether’s reserves against the potential erosion of purchasing power that may occur during prolonged downturns in the cryptocurrency market.
The recent surge in cryptocurrency prices has notably contributed to the substantial appreciation of Tether’s Bitcoin holdings. This increase, totaling $1.1 billion, underscores the effectiveness and success of the investment strategy articulated by Tether in May 2023. The commitment to prudent financial management and strategic investment decisions has positioned Tether to capitalize on favorable market conditions, reinforcing its resilience and adaptability in the dynamic landscape of the cryptocurrency market.
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