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Bloomberg: Assisting Turkey in Freezing $1 Billion in Assets, Tether Is Reshaping Compliance Boundaries

On January 30, Turkish authorities froze over $500 million in assets linked to Veysel Sahin, who is accused of operating an illegal gambling platform and money laundering. The operation was executed by an unnamed cryptocurrency company, later revealed to be Tether Holdings SA, the issuer of the $185 billion stablecoin USDT. Tether has been cooperating with global law enforcement agencies to combat crypto-related crimes, including money laundering and sanctions evasion. Tether CEO Paolo Ardoino stated that the company follows legal procedures when assisting authorities, including the U.S. Department of Justice and FBI. The freeze is part of a broader Turkish operation that has seized over $1 billion in assets. A second individual under investigation for similar charges had an additional $500 million in crypto assets frozen, though it is unclear if Tether tokens were involved. According to Elliptic, Tether and its competitor Circle have blacklisted approximately 5,700 wallets holding around $2.5 billion in assets, with three-quarters of them containing USDT. Tether claims to have assisted law enforcement in 62 countries, freezing $3.4 billion in USDT tied to illicit activities. This marks a significant shift from Tether’s earlier conflicts with U.S. regulators, including a 2021 settlement over misrepresenting reserves. The company has recently re-entered the U.S. market with a compliant stablecoin, USAT, and has gained recognition for its cooperation with authorities. Despite this, USDT continues to face scrutiny for its use in criminal activities, including a recent case involving $1 billion in money laundering and reports of Iran’s central bank using USDT to evade sanctions.

marsbit02/15 04:10

Bloomberg: Assisting Turkey in Freezing $1 Billion in Assets, Tether Is Reshaping Compliance Boundaries

marsbit02/15 04:10

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