Tether Announces Freezing of Addresses Associated with Sanctioned Entities
Tether Freezes Addresses Linked to Sanctioned Entities Amidst Allegations of Bypassing Oil Sanctions
Tether, the issuer of the popular stablecoin USDT, has made a significant announcement regarding its commitment to freezing addresses associated with sanctioned entities. This decision comes in response to allegations that Venezuela’s state-run oil company, PDVSA, has been using Tether to bypass sanctions imposed on its crude oil and fuel exports.
A recent Reuters report revealed the alleged use of cryptocurrencies by PDVSA to facilitate its oil exports amidst newly reimposed oil sanctions by the United States. The U.S. Treasury Department has mandated that PDVSA customers and providers wind down transactions by May 31 due to Venezuela’s failure to implement electoral reforms.
To mitigate the risk of funds being frozen in foreign bank accounts as the sanctions take effect, PDVSA has reportedly turned to Tether for its oil sales. The Venezuelan oil company has restructured its spot oil deals, requiring prepayment in USDT for exported cargo and mandating that new customers engaging in oil transactions hold cryptocurrency in a digital wallet.
By freezing addresses associated with sanctioned entities, Tether aims to prevent the circumvention of sanctions and reinforce compliance efforts. This move is crucial in light of the recent allegations and the potential impact on the cryptocurrency market.
In related news, Tether recently surpassed a market capitalization of $100 billion, showcasing impressive growth year-to-date. Despite concerns about the quality of assets backing USDT, Tether has refuted claims of involvement in cyber fraud and money laundering activities. The company has also partnered with Fuze to enhance education and awareness surrounding digital assets in Turkey and the Middle East.
As the situation unfolds, the crypto community will be closely monitoring Tether’s actions and the implications for the broader market. Stay tuned for further updates on this developing story.
