KEY POINTS
- Tether says it is in the process of "doing the same" with the FBI
- The stablecoin issuer implemented a "wallet freezing policy" on Dec. 1
- Tether has frozen 326 wallets, with $435 million in USDT, for law enforcement agencies
Tether, the world's largest stablecoin issuer and the company behind the USDT stablecoin, has informed lawmakers that the company "recently onboarded the United States Secret Service" on its platform and is in the process of "doing the same" with the FBI, stressing its commitment to "fighting illicit use of stablecoins."
In a letter, Tether informed Sen. Cynthia Lummis, R-Wyo., and Rep. French Hill, R-Ark., of the company's progress in its commitment to maintaining the "highest standards of security within the cryptocurrency ecosystem." The stablecoin issuer disclosed that it has frozen 326 wallets, with $435 million in USDT, to assist law enforcement agencies.
"In addition to these measures, Tether continues to play a critical role in assisting law enforcement. As recently highlighted by the U.S. Department of Justice, our work has helped thwart bad actors and aid victims' recovery. Tether recently onboarded the United States Secret Service into our platform and is in the process of doing the same with the Federal Bureau of Investigation. These strategic relationships reinforce our commitment to supporting law enforcement in combating nefarious activities and contributing to the recovery of victims' funds," it added.
In October, Lummis and Hill urged Attorney General Merrick Garland "to carefully evaluate the extent to which Binance and Tether are providing material support and resources to support terrorism."
"Tether is grateful for the opportunity to address the concerns raised by U.S. lawmakers, and we are committed to continuing Tether's close work with law enforcement in the U.S. and globally," CEO Paolo Ardoino said. "Tether seeks to be a world-class partner to the U.S. as we continue to assist law enforcement and expand dollar hegemony globally."
The company also underscored the implementation of a "wallet freezing policy" on Dec. 1, calling it a "landmark initiative for enhanced security and compliance within the cryptocurrency ecosystem."
Moreover, Tether said its "alignment" with the Office of Foreign Assets Control's (OFAC) Specially Designated Nationals (SDN) list is a "proactive stance in security" and the policy of freezing wallets of the people on the list is "straightforward yet impactful."
"This strategic decision is a definitive move designed to protect our users and the integrity of the stablecoin ecosystem. By raising the standards of global compliance, we are working to help make Tether tokens an even safer and more reliable, industry-leading medium of exchange," the letter added.
