BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
SUBSCRIBE
BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
BlockNews.com
No Result
View All Result
Home Crypto

Top Crypto Company Defies U.S. Sanctions on Service that Hid Stolen Assets

BlockNews Team by BlockNews Team
August 26, 2022
in Crypto
Reading Time: 3 mins read
A A
Tether-Coin
1
SHARES
15
VIEWS
Share on TwitterShare on Reddit

The U.S. government’s latest initiative to combat the illegal use of cryptocurrencies by criminal elements and foreign regimes is encountering rejection within the sector, including one of its most prominent and influential players – Tether.

You might also like

Coinbase Argues Software Services Are Not Securities: A Case Against the SEC

Nigeria Now Enabled to Make Direct Crypto Purchases Through MetaMask

FTX Is Looking To Recover $460M From A Venture Capital Supported By Bankman-Fried’s Alameda Research

Tornado Cash

The Treasury Department Sanctioned Tornado Cash earlier this month after alleging that it had enabled North Korean hackers and others to launder digital assets stolen in cybercrimes. Sanctions often target specific people, nations, or businesses, and U.S. businesses abide by them by ensuring they don’t do business with the targeted parties.

The penalties imposed on Tornado Cash, however, are unusual. As a mixer, Tornado Cash hides the origin of digital assets by combining them before consumers withdraw them. Its authors wrote it so that even they cannot modify it, and it exists as software code on a decentralized, global network of computers. Leaders in the cryptocurrency sector claim they are unsure of what they need to do to remain legal.

Tether’s Violation

Tether operates the largest stablecoin in the world, USDT, with a market cap of $67B at the time of publishing. This stablecoin is a cornerstone of the global cryptocurrency market and has a value pegged to the U.S. dollar. In other circumstances, investors use it as collateral when purchasing and selling other digital assets.

Tether has already drawn the attention of American regulators and law enforcement, with some claiming the company might violate new Treasury regulations. These claims are made on the basis that Tether is not blocking accounts connected to Tornado Cash, according to Dune Analytics.

In a statement, Paolo Ardoino, the chief technology officer of Tether, claimed that “Tether has not been approached by U.S. government or law enforcement with a request” to halt transactions with Tornado Cash. The company “often replies to inquiries from U.S. authorities,” he added.

Current Status of Sanctions

It is unclear whether Tether is required by law to comply with Treasury’s measures. Because it “does not operate in the United States or onboard U.S. persons as customers,” Ardoino added. The Treasury Department declined to respond when asked if Tether violates the Tornado Cash sanctions.

Experts on sanctions acknowledged that the issue is up for debate.

Scott Anderson, a former State Department adviser speaking to the Washington Post said, “the restrictions generally apply to all U.S. nationals or corporations, or any person or organization in or doing business in the United States, or any transactions touching the United States.”

Tether’s Claims

Since Tether registered with the Financial Crimes Enforcement Network, a component of the department that combats money laundering, its executives claim that Treasury oversees the company.

Previous Cases

Tether has a history of being penalized by authorities. It settled allegations from the New York Attorney General’s office in 2021 that it had lied about the make-up of the assets underpinning its stablecoin, USDT, for $18.5 million. Later that year, the company paid an additional $41 million to resolve similar allegations made by the Commodity Futures Trading Commission.

Key Takeaway

The vagueness surrounding Tether’s statement and the ensuing controversy highlights the firestorm the Treasury has unleashed in its most recent attempt to stop the unlawful exploitation of digital assets. Currently, no official action has been taken against Tether, although punitive measures may be taken shortly, pending Treasury Department decision-making.

Tags: BlockchaincryptoWeb3
TweetShareShare

Recommended For You

Coinbase Argues Software Services Are Not Securities: A Case Against the SEC

by BlockNews Team
March 24, 2023
0
coinbase

Coinbase CLO Paul Grewal announced that the company provided details to the SEC about why staking services are not securities Grewal saw the SEC’s perspective on software services...

Read more

Nigeria Now Enabled to Make Direct Crypto Purchases Through MetaMask

by BlockNews Team
March 24, 2023
0
metamask

Nigerians can now buy crypto using MetaMask instead of centralized exchanges Crypto fintech MoonPay merged with ConsenSys to allow users to buy cryptocurrencies through direct bank transfers Nigeria...

Read more

FTX Is Looking To Recover $460M From A Venture Capital Supported By Bankman-Fried’s Alameda Research

by BlockNews Team
March 24, 2023
0
ftx

FTX files for return of $460 million investment funds made to venture capital firm by Sam Bankman-Fried through Alameda Research. When he invested, Sam Bankman-Fried was allegedly in...

Read more

OpenZeppelin Reveals Top 10 Blockchain Hacking Techniques in 2022

by BlockNews Team
March 23, 2023
0
OpenZeppelin

OpenZeppelin's top 10 hacking methods of 2022 serve as a sobering reminder of the value of cybersecurity and the need for ongoing research to make blockchain systems more...

Read more

Crypto Wallet, ZenGo, Announces Its Discovery Of Security Vulnerabilities In Popular DApps

by BlockNews Team
March 23, 2023
0
zengo

ZenGo reveals security risks in many Web3 vendors. The crypto wallet is awarded bug bounties and grants. Called a "red pill attack," it can steal user assets. ZenGo...

Read more
Next Post
Eth-Merge-Via-Eth-Blog

Ethereum Developers Confirm The Final Date For The Merge

Related News

Polkadot-Logo

Polkadot Price Analysis: Bulls Overpower Bears As DOT Targets $10

October 27, 2022
Meme Coins: From Origins to Implications

Meme Coins: From Origins to Implications

August 16, 2022
Ukrainian Puts Life Savings into Crypto Token Terra Right Before The Tokens Crash

Ukrainian Puts Life Savings into Crypto Token Terra Right Before The Tokens Crash

May 26, 2022

Browse by Category

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized
BlockNews.com

BlockNews.com brings you the most important Crypto and NFT news in the space.

CATEGORIES

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized

RECENT POSTS

  • Coinbase Argues Software Services Are Not Securities: A Case Against the SEC March 24, 2023
  • Nigeria Now Enabled to Make Direct Crypto Purchases Through MetaMask March 24, 2023
  • FTX Is Looking To Recover $460M From A Venture Capital Supported By Bankman-Fried’s Alameda Research March 24, 2023

© 2022 BlockNews.com - Crypto and NFT news website by JRNY Club.

No Result
View All Result
  • Home
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides

© 2022 BlockNews.com - Crypto and NFT news website by JRNY Club.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?