Tether Freezes $873,118 Worth of USDT Linked to Terrorist Activity in Israel and Ukraine

Stablecoin Issuer Collaborates with Law Enforcement Agencies

Tether, the stablecoin issuer, has taken action to freeze 32 addresses associated with terrorist activity in Israel and Ukraine. In collaboration with local law enforcement agencies, Tether has frozen $873,118 worth of its USDT cryptocurrency that was linked to illicit activity. This move comes as Tether CEO Paolo Ardoino emphasizes that cryptocurrency transactions are not anonymous, but rather traceable and trackable on blockchain platforms.

Tracking and Tracing Illicit Funds

Tether's CEO Ardoino stated that the company is actively working with global law enforcement agencies to track and trace the movement of funds associated with criminal and terrorist activity. The stablecoin issuer aims to freeze assets whenever possible. In late 2022, Tether had already frozen over $360 million in assets and re-issued more than $100 million of intercepted USDT. To date, Tether estimates that it has frozen a total of $835 million of USDT, primarily related to blockchain and cryptocurrency exchange hacks.

Israel's Efforts Against Terrorist Financing

In June 2023, Israel's defense minister Yoav Gallant announced that the country had seized cryptocurrency wallets containing millions of dollars, which were transferred to the terrorist organization Hezbollah. Through the use of Chainalysis' blockchain analysis tools, over $1.7 million worth of cryptocurrency was confiscated in this operation. These efforts demonstrate Israel's commitment to combating terrorist financing.

Cybercriminals' Shift Towards Stablecoins and Altcoins

Blockchain data reveals that cybercriminals are increasingly using stablecoins and altcoins instead of Bitcoin (BTC) for transferring value over the internet. This shift is driven by the accessibility and ability to launder these cryptocurrencies through decentralized exchanges. Stablecoins, like Tether's USDT, offer a more attractive option for illicit activities due to their perceived anonymity and ease of use.