Tether, the stablecoin issuer, has refuted claims made by some media outlets, asserting that there is no evidence of any violations of sanctions laws or connections to terrorism. The company, in a press release, dismissed allegations of inadequate customer due diligence or screening practices, emphasizing its commitment to compliance.
Tether disclosed its proactive collaboration with 31 law enforcement agencies across 19 jurisdictions to combat malicious activities. The stablecoin issuer claimed to have frozen a total of $835 million in assets related to unlawful activities, primarily stemming from hacks of cryptocurrency exchanges and DeFi platforms.
Addressing concerns about the Middle East, Tether, in partnership with the NBCTF in Israel, successfully froze 32 addresses associated with illegal activities, safeguarding a total of $873 million. Despite the relatively modest amount compared to traditional financial systems, Tether highlighted its ongoing vigilance and implementation of essential measures to counter illicit conduct.
The company asserted its cooperation with law enforcement agencies in cases involving Ukraine and Israel. Furthermore, Tether urged the U.S. government to fact-check the mainstream media’s interpretation of data.
This statement follows a call from U.S. lawmakers, led by Senator Cynthia Lummis, urging the Department of Justice (DOJ) to conclude its investigation and consider criminal charges against Binance and Tether. The lawmakers cited concerns based on a reportedly flawed report by the Wall Street Journal.
The Wall Street Journal had previously claimed that Hamas and affiliated terror groups received tens of millions of dollars in cryptocurrency, allegedly supporting conflicts in the Middle East. However, blockchain analytics firms, including Chainalysis and Elliptic, contradicted this, estimating the actual funding to be in the range of a few thousand dollars.
Despite these clarifications, the Wall Street Journal has not issued a correction. The increased scrutiny on Tether and Binance by U.S. lawmakers continues in light of these developments.
