Tether Freezes Tokens of Sanctioned Individuals Listed by OFAC

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By BitcoinWiki News

Key Takeaways:

– Tether has frozen the wallets of individuals sanctioned by the U.S. Office of Foreign Asset Controls (OFAC)
– Tether aims to prevent potential misuse of its tokens and enhance security measures
– Tether has frozen a total of 161 Ethereum wallets, although 150 of these wallets currently hold no USDT tokens
– Tether’s Bitcoin holdings have gained around 85%, or $1.1 billion, since their acquisition.


Section 1: Tether Freezes Wallets Linked to Sanctioned Individuals
Tether, the company behind the stablecoin USDT, has decided to freeze the wallets of individuals sanctioned by the U.S. Office of Foreign Asset Controls (OFAC). This decision is aimed at preventing potential misuse of its tokens and enhancing security measures in alignment with global law enforcement and regulators.

Section 2: Tether’s Action on Tornado Cash and Frozen Ethereum Wallets
Tether has previously been hesitant to freeze wallets interacting with the sanctioned protocol, Tornado Cash, but has now blacklisted its contract addresses. The company has frozen a total of 161 Ethereum wallets, with 150 of them currently holding no USDT tokens. It is unclear if these wallets were previously involved in any related activities.

Section 3: Details of USDT Tokens Held in the Frozen Wallets
Of the remaining 11 wallets holding USDT tokens, the majority of the tokens are concentrated in a single address linked to a recent hack of the betting platform Stake. The other wallets hold smaller amounts of USDT tokens, with one containing just 16 cents worth of frozen USDT. Some wallets also hold USDT tokens on different chains, including Ethereum Layer 2 networks.

Section 4: Tether’s Bitcoin Holdings and Recent Profits
In May 2023, Tether announced its plans to allocate up to 15% of net realized profits into Bitcoin on an ongoing basis. As a result, Tether’s Bitcoin holdings have gained around 85%, or $1.1 billion, since their acquisition, due to the recent surge in Bitcoin prices.

Conclusion
Tether’s decision to freeze the wallets of individuals sanctioned by OFAC is a strategic move to prevent misuse of its tokens and enhance security measures. The company has also taken action against wallets interacting with the sanctioned protocol Tornado Cash. Additionally, Tether’s investment in Bitcoin has proven to be profitable, with its Bitcoin holdings gaining significantly in value.

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