Tether Onboards US Secret Service and FBI Into its USDT Stablecoin Platform

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by Alisa Davidson

Published: December 18, 2023 at 2:49 am Updated: December 18, 2023 at 2:50 am

by Victor Dey

Edited and fact-checked:
December 18, 2023 at 2:49 am

In Brief

Tether integrated the US Secret Service and FBI into its platform and froze wallets on the US sanctions list.

Tether Onboards US Secret Service and FBI Into Platform

The company behind the USDT stablecoin — Tether announced the integration of the United States Secret Service and Federal Bureau of Investigation (FBI) into its platform.

Tether’s chief executive officer Paolo Ardoino, who recently took over the reins of the company, highlighted Tether’s decision to disable USDT tokens in all wallets on the Office of Foreign Assets and Controls (OFAC) sanction list.

In a letter submitted to the US Senate and House of Representatives, Ardoino stated that Tether assisted the Department of Justice, the US Secret Service and the FBI in freezing 326 wallets, controlling USDT worth $435 million thus far, emphasizing the commitment to security and close working relationships with law enforcement.

Tether Strengthens Ties with Law Enforcement

Earlier this month, Tether announced the initiation of a voluntary wallet-freezing policy, introducing secondary market controls to halt activity linked with sanctioned individuals listed on the United States Office of Foreign Assets Control Specially Designated Nationals List.

The policy asserts to be a proactive initiative aimed at fostering closer collaboration with global regulators and law enforcement agencies.

In 2022, Tether had refused to proactively freeze wallets associated with irregular activities. However, the increased regulatory scrutiny and enforcement actions against cryptocurrency firms in the US and worldwide prompted the company to reconsider its approach.

In response to heightened regulatory attention, Tether revealed its commitment to security by integrating law enforcement agencies into the platform, actively engaging in cooperation with authorities.

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About The Author

Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and engagement with scientific writing.

Alisa Davidson