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Usha Yadav
Aug 25, 2022
by Usha Yadav

Tether Holds Firm On Decision Not To Freeze Tornado Cash Addresses

Tether

Table of contents

  1. Tornado Cash Ban
  2. Tether Will Not Freeze Addresses Unless Explicitly Asked
Tether (USDT), a provider of stablecoins pegged to the dollar, declared on Wednesday that it wouldn't freeze smart contract addresses. At the same time, the American government's decision to outlaw Tornado Cash is still being discussed in the cryptocurrency world. According to a recent blog post by Tether on the matter, the firm is awaiting guidance from law enforcement.

Tornado Cash Ban

The Ethereum-based platform Tornado Cash was outlawed on August 8 by the Office of Foreign Asset Control (OFAC), a financial watchdog inside the U.S. Treasury Department. Since then, disagreement has surrounded OFAC's efforts to impose sanctions. Of course, OFAC's sanctions had a knock-on effect and other businesses, including the Centre consortium of Circle Financial and Coinbase, Github, and Discord, took action. For instance, Tornado Cash's Discord channel was removed, developers were suspended from Github, and reports claimed that Centre blocked dozens of Ethereum addresses and frozen 75,000 USDC.

Tether noted that it might be "extremely disruptive" and "reckless" to arbitrarily freeze wallet or smart contract addresses. It might warn potential suspects of an upcoming police investigation, result in liquidating or abandoning assets, and impede the collection of more evidence.

Tether Will Not Freeze Addresses Unless Explicitly Asked

Neither U.S. authorities nor law enforcement has contacted Tether about freezing OFAC-sanctioned addresses, but Tether cooperates with U.S. officials, regularly communicating with them.

The business said there had been occasions when they were instructed to refrain from freezing suspicious private wallets to prevent alerting the subject of an inquiry and causing them to liquidate or abandon the funds. Tether's blog post also criticizes several stablecoin issuers, including Paxos, a licensed business with headquarters in New York.

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Tether Tornado Cash Tornado Cash Ban
Tether Holds Firm On Decision Not To Freeze Tornado Cash Addresses
Usha Yadav
Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

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