Sanctions Lead Tether to Freeze 41 Crypto Wallets

• Tether Freezes 41 Wallets on OFAC's SDN List
• On-Chain Data and Coin-Mixing Service
• Stablecoin Technology and User Safety
• Previous Precautionary Measures by Tether

Tether Freezes 41 Wallets on OFAC's SDN List

Stablecoin issuer Tether$1.000 -0.12% has reportedly frozen 41 wallets. These wallets are believed to be controlled by individuals on the Office of Foreign Assets Control's (OFAC) Specially Designated Nationals (SDN) List. This action took place on Saturday and is described by Tether as a precautionary measure.

On-Chain Data and Coin-Mixing Service

Available on-chain data indicates that several of these wallets have utilized a coin-mixing service called Tornado Cash. This activity was traced back to the previous six months. Additionally, one of the frozen wallets is suggested to have connections with the Ronin Bridge attack, which resulted in a $625 million loss. The U.S. Treasury Department attributes this attack to the North Korean hacking group known as Lazarus Group.

Stablecoin Technology and User Safety

Tether CEO, Paolo Ardoino, explains the action taken by the company, stating: By executing voluntary wallet address freezing of new additions to the SDN List and freezing previously added addresses, we will be able to further strengthen the positive usage of stablecoin technology and promote a safer stablecoin ecosystem for all users.

Previous Precautionary Measures by Tether

In the past, Tether has embarked on similar precautionary actions. In October, the company froze 32 wallets that were reportedly associated with terrorism and warfare activities in Ukraine and Israel. Furthermore, last month, Tether froze a substantial $225 million. This was in connection with a human trafficking syndicate and came after an investigation carried out by the U.S. Department of Justice.

Edited by Jonathan Stoker