- Tether has frozen $835 million in assets linked to criminal activity, working with countries like Brazil, Singapore, Germany, and the United States
- Tether addressed the criticism from some journalists and blockchain industry detractors in its press release
- The ability to freeze funds is hotly debated within the blockchain world
Tether yesterday revealed that it has cooperated with 31 agencies in 19 jurisdictions to freeze approximately $835 million in assets related to criminal activity. The USDT issuer worked with authorities in Brazil, Singapore, Germany, the United States, and many more to freeze the assets across 32 addresses, some of which had links to military action in Israel and Ukraine. The news will stir the debate between those who value unconfiscatable money, such as Bitcoin, and the benefits of being able to control a blockchain.
Tether Hammers Home the Point
For obvious reasons, Tether didn’t go into detail about its activities in freezing the assets in its press release, but it used them to hammer home a point about its technology and the criticism it has faced, and continues to face, from mainstream media outlets:
Despite Tether’s active support of law enforcement, there are still some journalists and detractors within the blockchain industry, making attempts to spin a case against the crypto industry, while failing to hold the slow or poorly equipped traditional financial system accountable, for not combatting the funding of criminal matters.
Tether CEO Paolo Ardoino said that, while cryptocurrency is a “powerful tool” is not a “tool for crime”:
Contrary to popular belief, cryptocurrency transactions are not anonymous; they are the most traceable and trackable assets. Every transaction is recorded on the blockchain, making it feasible for anyone to trace fund movements. Consequently, criminals foolish enough to employ cryptocurrencies for illegal activities will inevitably be identified.
Crypto Freezing Isn’t Universally Loved
In its press release, Tether stated that its ability to freeze and return stolen funds “underscores the innovative capabilities and security enhancements that blockchain technologies offer to the global financial system.”
However, it is this ability to freeze funds that pits the likes of Tether against Bitcoin supporters, who value the decentralized nature of the blockchain which makes it impossible for governments or indeed anyone to confiscate their funds if stored in a decentralized manner.
We saw the same response when BSV announced its coin-freezing tool last year, where it was called a “horrific backdoor” by an Ethereum Classic developer.
