Stablecoin issuer Tether has announced another step toward cooperation with law enforcement and regulatory agencies by initiating a voluntary wallet-freezing policy, according to a blog post on Dec. 9.
Since Dec. 1, Tether has been offering on the secondary market controls to freeze activity connected with Sanctioned persons on the United States Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) List. Companies and individuals controlled or owned by sanctioned countries are included on the list.
According to Tether, the policy will supplement existing security protocols and is a “proactive effort to work even more closely with global regulators and law enforcement agencies.”
Tether Introduces New Policy to Strengthen Ecosystem Security
The U.S. Department of the Treasury has been using the list to curb crypto transactions potentially connected to illegal activities, including funding terrorism and unauthorized fentanyl distribution.
Wallets previously added to the SDN List have already been frozen by Tether, a move that contradicts the company’s previous positions on the matter. In August 2022, for example, Tether announced it wouldn’t proactively freeze sanctioned Tornado Cash addresses unless instructed by law enforcement. According to the OFAC, individuals and criminal organizations have used Tornado Cash to launder over $7 billion in cryptocurrency since 2019.
“By executing voluntary wallet address freezing of new additions to the SDN List and freezing previously added addresses, we will be able to further strengthen the positive usage of stablecoin technology and promote a safer stablecoin ecosystem for all users,” said Paolo Ardoino, CEO of Tether.
The company based in Hong Kong is behind the stablecoin Tether (USDT), whose market capitalization reached all-time highs during the crackdown on crypto firms in the U.S. over the past months. Currently, its market capitalization is at $90 billion, indicating a strong demand for the stablecoin that holds nearly 70% of the market.
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It was a prescient and – as it turned out – incredibly optimistic sign off from Peter Mandelson after eight years as Chancellor of Manchester Metropolitan University.
“I hope I survive in my next job for at least half that period”, the Financial Times reported him as saying – with a smile.
As something of a serial sackee from government posts, we know Sir Keir Starmer was, to an extent, aware of the risks of appointing the ‘Prince of Darkness’ as his man in Washington.
But in his first interview since he gave the ambassador his marching orders, the prime minister said if he had “known then what I know now” then he would not have given him the job.
For many Labour MPs, this will do little to answer questions about the slips in political judgement that led Downing Street down this disastrous alleyway.
Like the rest of the world, Sir Keir Starmer did know of Lord Mandelson’s friendship with the paedophile Jeffrey Epstein when he sent him to Washington.
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The business secretary spelt out the reasoning for that over the weekend saying that the government judged it “worth the risk”.
Image: Keir Starmer welcomes Nato Secretary General Mark Rutte to Downing Street.
Pic: PA
This is somewhat problematic.
As you now have a government which – after being elected on the promise to restore high standards – appears to be admitting that previous indiscretions can be overlooked if the cause is important enough.
Package that up with other scandals that have resulted in departures – Louise Haigh, Tulip Siddiq, Angela Rayner – and you start to get a stink that becomes hard to shift.
But more than that, the events of the last week again demonstrate an apparent lack of ability in government to see round corners and deal with crises before they start knocking lumps out of the Prime Minister.
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‘Had I known then, what I know now, I’d have never appointed him’ Starmer said.
Remember, for many the cardinal sin here was not necessarily the original appointment of Mandelson (while eyebrows were raised at the time, there was nowhere near the scale of outrage we’ve had in the last week with many career diplomats even agreeing the with logic of the choice) but the fact that Sir Keir walked into PMQs and gave the ambassador his full throated backing when it was becoming clear to many around Westminster that he simply wouldn’t be able to stay in post.
The explanation from Downing Street is essentially that a process was playing out, and you shouldn’t sack an ambassador based on a media enquiry alone.
But good process doesn’t always align with good politics.
Something this barrister-turned-politician may now be finding out the hard way.