OFAC freezer. The cryptocurrency ecosystem has always operated with two associated, but distinct, faces. On the one hand, its historic and decentralized channel built on the cryptographic traces of Bitcoin. The other a more centralized sectorwith platforms like Binance and stablecoins like the controversial USDT, to name only the leaders. And suffice to say that the place occupied by these last giants is not very enviable. Especially in the middle of a regulatory storm intensified in the crypto zone. A context within which society Tether visibly wants to position itself in the camp of the regulators during the next distribution of roles, already in progress.
Tether: next target of regulatory authorities?
The regulatory relentlessness applied to the Binance platform could ultimately be interpreted as a head planted at the end of a peak for the – at least centralized – ecosystem of cryptocurrencies. With the main event to remember, the more forced than voluntary departure of Changpeng Zhao (CZ), for the benefit of a certain Richard Teng. The latter mainly presented as more legally correct.
A context within which the Tether company has just appointed Paolo Ardoino as the official head of its operations. A man already omnipresent on social media, such as the X network, in order to defend the interests of this company known to be opaque and adept at freezing its users’ funds. And suffice to say that this change in internal dynamics corresponds very clearly to a Change of direction effective.
Because the Tether company is known for the omnipresence and the impact of its stablecoin USDT. A token whose valuation is currently estimated at more than 96 billion dollars. The only actor in this economy of digital stability to show a significant increase (+25%) over the last year. As saying that all the ingredients are there to attract the wrath of regulators. Unless you try to brush them in the direction of the sanction…
closer working relationships with crypto regulators
In a recent publication, the Tether company announces the establishment of a “ new policy to strengthen ecosystem security “. And suffice to say that for security purposes it is mainly a question of trampling a little further on the initially decentralized bases of the cryptocurrency sector. Because the stated goal is to take “additional proactive measures” to freeze its USDT on its sole platform.
“Tether today announced its latest initiative to protect the cryptocurrency ecosystem. On December 1, 2023, the company made the decision to launch a new voluntary wallet freeze policy designed to combat activities related to sanctioned individuals on the Office of Foreign Assets Control’s Specially Designated Nationals (SDN) list (OFAC). (…) Tether will now offer on the secondary market the sanctions controls that it already applies for wallets on its platform. »
Tether
In fact, Tether therefore undertakes to freeze all wallets singled out by OFAC. And this decision by Paolo Ardoino also applies to everyone who will be added in the future. Knowing that it is enough to be the developer of the Tornado Cash mixer to find themselves high on this blacklist.
An announcement visibly followed by a rapid and effective implementation. Because following this relationship now displayed as close with OFAC, the Tether company would already have frozen 161 Ethereum wallets in less than 24 hours. However, it appears that 150 of these addresses did not hold any USDT stablecoins at the time of their “proactive” freezing.