Tether, the world’s largest stablecoin issuer, has frozen addresses linked to terrorist activity in Israel and Ukraine. The addresses contained a total of $873,000 USDT. Tether froze those funds due to allegations of their connection to criminal activity.
Stablecoin issuer Tether in collaboration with the local law enforcement agencies, was able to freeze 32 addresses that were allegedly linked to criminal activities in Israel and Ukraine.
According to an announcement from the company, the decision was taken in partnership with Israel’s National Bureau for Counter Terror Financing to freeze $873,118 worth of Tether (USDT) linked to illicit activity.
CEO of Tether, Paolo Ardoino who was appointed in October, highlighted the fact that cryptocurrency transactions are being stored on blockchain systems, allowing the stablecoin issuer to easily trace and block the use of USDT linked to terrorist funding.
“Contrary to popular belief, cryptocurrency transactions are not anonymous; they are the most traceable and trackable assets.”
The CEO reiterated that the stablecoin issuer is currently joining forces with global law enforcement agencies. He also mentioned that they’re actively working to track and trace the movement of illicit funds, freezing assets linked to criminal and terrorist activity where necessary.
Over $360 million in assets had been frozen by Tether in late 2022. The company subsequently re-issued intercepted funds worth over $100 million of USDT.
Tether’s history of freezing addresses linked to criminal activity extends to over 30 countries worldwide. So far, Tether has frozen a total of $835 million USDT in response to allegations of cryptocurrency exchange hacks, ransomware, fraud, and other criminal activities. The company has stated that it takes these actions to protect its customers and ensure that its stablecoin is not used for illegal purposes. This is part of Tether’s broader commitment to compliance and regulatory compliance.
An announcement from Israel’s defense minister, Yoav Gallant in June stated that the country had seized cryptocurrency wallets. He mentioned that the wallets contained millions of dollars transferred to the terrorist organization Hezbollah.
Over $1.7 million of cryptocurrency was seized in the operation, with the help of Chainalysis’ blockchain analysis tools. Chainalysis is a company that provides blockchain analysis tools for businesses, governments, and other organizations. These tools help to track and monitor transactions on the blockchain, including identifying suspicious or illicit activity.
Meanwhile, blockchain data shows that cybercriminals are increasingly using stablecoins and altcoins to conduct transactions after moving away from using Bitcoin (BTC), as they are easier to access and can be laundered through decentralized exchanges. This emphasizes the need for law enforcement agencies to adapt their strategies to keep up with the evolving landscape of cybercrime.
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