Stablecoin issuer Tether has taken action to freeze 32 addresses associated with terrorist activity in Israel and Ukraine in partnership with local law enforcement authorities. The company has announced that it has frozen $873,118 worth of Tether connected to illicit operations in Israel and Ukraine, with collaboration from Israel’s National Bureau for Counter-Terror Financing.
Tether’s CEO, Paolo Ardoino, who took over the position in October, emphasized the fact that cryptocurrency transactions leave traces on blockchain platforms, allowing Tether to play a role in preventing the use of USDT for financing terrorism. He pointed out that, contrary to common misconceptions, cryptocurrency transactions are not anonymous; they are, in fact, among the most traceable and trackable assets.
The CEO further disclosed that the stablecoin issuer is actively collaborating with international law enforcement agencies to monitor and follow the unlawful flow of funds and, whenever possible, freeze assets tied to criminal and terrorist activities. As of late 2022, Tether had frozen assets exceeding $360 million, subsequently re-issuing more than $100 million of intercepted USDT. Presently, the company estimates that it has frozen a total of $835 million in USDT, primarily associated with hacks in blockchain and cryptocurrency exchanges. Tether has cooperated with 32 countries around the globe to address illicit cyber activities involving its dollar-backed stablecoin.
In June 2023, Israel’s Defense Minister, Yoav Gallant, reported that the country had confiscated cryptocurrency wallets holding millions of dollars that had been transferred to the terrorist organization Hezbollah.
The operation, aided by Chainalysis’ blockchain analysis tools, resulted in the seizure of over $1.7 million in cryptocurrency.
Meanwhile, blockchain data indicates a shift in the tactics of cybercriminals, who are increasingly turning to stablecoins and altcoins, rather than Bitcoin, for transferring value over the internet. This preference arises from the accessibility and possibility of laundering these digital assets through decentralized exchanges.
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