Tether">Tether has sent letters to US lawmakers addressing calls for the Department of Justice to evaluate if the major stablecoin provider enables terrorism financing and illicit activity. The communications emphasize Tether’s Know Your Customer program, transaction monitoring, and freezing of suspicious accounts.
The letters from CEO Paolo Ardoino were directed to banking committees in the Senate and House. They follow demands from legislators last October for DOJ involvement after a Hamas crypto-funded attack, claiming Tether provides “material support” for terrorism through lax controls.
As part of its response, Tether touts using leading blockchain surveillance tools from Chainalysis and assisting law enforcement probes while seeking to become a “world class partner to the US.” The firm also initiated a voluntary wallet freezing policy in December to control sanctioned activity.
Tether states it takes a proactive approach to identifying illicit transactions, while conducting ongoing client reviews after onboarding. The ramped up compliance efforts come amid growing regulatory pressure on crypto firms to tighten controls and transparency around stablecoins especially.
