Tether Addresses DOJ Action Following US Lawmakers’ Concerns

Tether has reached out to U.S. legislators, emphasizing its commitment to preventing the misuse of its stablecoin. The company, well-known for its digital currency, sent detailed communications to the U.S. Senate Committee on Banking, Housing, and Urban Affairs and the U.S. House Financial Services Committee on Nov. 16 and Dec. 15.

These communications were a direct response to concerns raised by Senator Cynthia Lummis and Representative French Hill. In October, they called on the Department of Justice (DOJ) to investigate potential links between Tether, Binance, and terrorism financing. This followed an attack by Hamas against Israel on Oct. 7, where the lawmakers raised suspicions about the role of illicit crypto transactions in funding terrorism.

To address these concerns, Tether outlined the robust measures it has in place. The company highlighted its Know Your Customer (KYC) program, its transaction monitoring system, and a proactive approach to identifying and freezing accounts involved in illegal activities. “We have always assisted law enforcement when called upon to act, and we remain fully committed to continuing to work proactively with agencies globally. Tether has and will assist in identifying and freezing addresses subject to sanctions, engaged in illicit activity, or engaged in any form of terrorist financing,” Tether stated.

Furthermore, Tether emphasized its ongoing vigilance beyond customer onboarding. The company utilizes Chainalysis’s Reactor tool and obtains risk reports from the secondary market for continuous surveillance of client activities. These tools are not only advanced in blockchain surveillance but are also used by several U.S. government agencies.