The business that created the well-known stablecoin USDT, Tether, recently filed letters to the US House Financial Services Committee and US Senate Committee on Banking, Housing, and Urban Affairs detailing the specifics of its cooperation with US law enforcement. Tether made the letters public, highlighting the company’s dedication to security and strong coordination with law enforcement.

Increased Security Protocols and Cooperation

Following his recent appointment as CEO, Paolo Ardoino of Tether emphasized the company’s proactive measures in blocking Tether coins linked to wallets that are listed as sanctioned by the Office of Foreign Assets and Controls (OFAC). This action shows Tether’s dedication to upholding regulations and avoiding stablecoin abuse.

Ardoino disclosed in the correspondence that Tether engaged in active cooperation with law enforcement organizations, such as the Federal Bureau of Investigation (FBI), the U.S. Secret Service, and the Department of Justice. With Tether’s help, 326 wallets holding a total of 435 million USDT were frozen. Additionally, Ardoino disclosed that Tether has integrated the US Secret Service and is doing the same with the FBI on its platform.

Dedicated to Integrity and Security

Tether’s commitment to upholding the security and integrity of its operations is demonstrated by its collaborations with these law enforcement organizations. Tether wants to actively assist in stopping illegal activity and protecting its stablecoin by collaborating with authorities.

Furthermore, Tether’s strategic choice to consistently invest up to 15% of net realized profits in Bitcoin in May 2023 has paid off. By taking this action, Tether’s reserves are shielded from losing purchasing power amid protracted declines in the value of cryptocurrencies. Tether’s Bitcoin holdings have increased by 85% as a result of the current spike in price, totaling gains of about $1.1 billion since the acquisition.

Tether’s dedication to security, compliance, and law enforcement cooperation is in line with a larger industry trend of building strong structures to allay regulatory worries and improve the general legitimacy of digital assets.