Tether Freezes Over $1 Billion USDT in Response to US Sanction List
Tether company has frozen over $1 billion in USDT stablecoins on crypto wallets that have been added to the US sanction list. This decision is a result of the company’s policy update announced in December 2023. Tether is now actively blocking access to wallets on the blacklist, following the directives of the Office of Foreign Assets Control (OFAC).
Omni Core Software Client Enables Tether to Block Sanctioned Wallets
The updated version of the Omni Core software client, released by the company after a cyberattack in 2017, allows Tether to block assets and transactions associated with sanctioned wallets. Currently, there are around 1,500 addresses on Tether’s blacklist where approximately 1.1 billion USDT is held.
Debate Over Compliance with Anti-Money Laundering Standards
Some experts believe that such measures violate the principles of decentralization of cryptocurrencies and could be seen as extrajudicial confiscation of funds. However, Tether claims that the blocks are necessary to comply with international standards on anti-money laundering and counter-terrorism financing.
US Senators Raise Concerns About Stablecoins Circumventing Sanctions
This policy update has also caught the attention of US senators, who warn that stablecoins such as USDT could be used to circumvent international sanctions by countries like Russia, Iran, and North Korea.
