Tether Cracks Down on Crypto Wallets Financing Terrorism in Israel
Tether, the cryptocurrency company behind the world’s largest stablecoin, has taken decisive action against the illegal use of its digital currency, which has been found to fund terrorism in Israel. In a significant move, Tether has frozen 32 crypto wallets containing a sum of $873,118.34, which were linked to illicit activity in Israel and Ukraine.
Collaborating closely with the National Bureau for Counter Terror Financing of Israel, Tether has been working tirelessly to combat the use of its stablecoin for nefarious purposes. We eagerly anticipate continued collaboration with global law enforcement agencies as part of our commitment to global security and financial integrity, said Tether CEO Paolo Ardoino.
As the largest stablecoin in terms of market capitalization, with a value of $83 billion, Tether is pegged to the US dollar, ensuring each token is backed by $1 in reserve assets. This includes various forms of financial assets such as cash, US Treasuries, money market funds, Bitcoin, and gold.
Stablecoins like Tether are popular among crypto traders who employ them to facilitate transfers between different cryptocurrencies or to convert their investments into fiat currencies. However, the recent crackdown by Tether demonstrates the company’s determination to combat the misuse of its stablecoin.
Tether’s efforts to enhance security and integrity extend beyond freezing wallets associated with terrorism. The company has worked alongside 31 agencies across 19 jurisdictions, assisting in investigations and freezing approximately $835 million in assets, primarily linked to theft through blockchain and exchange hacks.
Contrary to public belief, Tether emphasizes that cryptocurrency transactions are not anonymous but rather highly traceable due to every transaction being recorded on the blockchain. Tether’s CEO Ardoino reinforces this point, stating, Cryptocurrency is a powerful tool, but it is not a tool for crime. Consequently, criminals foolish enough to employ cryptocurrencies for illegal activities will inevitably be identified.
This crackdown on cryptocurrency-related terrorism follows reports of Hamas, the armed wing of the Palestinian group, utilizing complex methods to raise funds through bitcoin. In response, Binance, the world’s largest cryptocurrency exchange, froze numerous crypto accounts associated with Hamas, following requests from Israeli law enforcement. Data from Tel Aviv-based crypto analytics and software firm BitOK indicates that the digital-currency wallets connected to Hamas have received approximately $41 million over the past two years.
In conclusion, Tether’s proactive measures to combat the misuse of its stablecoin underscore its determination to ensure financial security and integrity. By collaborating with global law enforcement agencies, Tether aims to counter cryptocurrency-funded terrorism and protect the global financial system from illicit activities. The traceability of cryptocurrency transactions serves as a deterrent to criminals, ultimately leading to their identification and apprehension. As the battle against crypto-related terrorism continues, companies like Tether and exchanges such as Binance play a crucial role in safeguarding the integrity of the digital currency landscape.
