Thursday, May 23, 2024

Tether Enlists Chainalysis to Combat Illicit Activity in Secondary Market.

Tether will be able to keep an eye on the stablecoin secondary market because of a solution developed by Chainalysis, a blockchain analysis company. Tether will be able to gather market intelligence and spot wallets that might be connected to prohibited or unlawful addresses thanks to these additional features.

There will be multiple tools in the new solution. Four of these were listed by Tether in a website announcement. A list of addresses and transactions involving sanctioned firms will be made available through Sanctions Monitoring. The Illicit Transfer Detector is designed to identify transactions that may be connected to illicit activity, such as financing terrorist operations.

Holders of Tether ~USDT $1.00} will be categorised based on their kind, such as exchange or darknet market. The activities of “significant” USDT holders will be the main focus of the Largest Wallet Analysis. Paolo Ardoino, CEO of Tether, stated:

“Our partnership with Chainalysis is a critical milestone in our continued efforts to create security and transparency in the cryptocurrency space. […] This partnership strengthens our proactive strategy for protecting our ecosystem from nefarious activity.

According to the announcement, Tether has worked with law enforcement in 43 jurisdictions “to address illicit activities.” Nevertheless, the stablecoin’s purported involvement in illegal activity and the funding of terrorism have put the corporation under scrutiny.

Even US Senator Cynthia Lummis, a crypto enthusiast, took issue with Tether and demanded in a letter to Attorney General Merrick Garland that Tether and Binance be looked into for their possible involvement in the October Hamas assaults on Israel. Tether was accused by her and cosigner Representative French Hill of “knowingly facilitating violations of applicable sanctions laws.”

The role that cryptocurrency played in financing crime in the region was harshly criticised in a January report on organised crime in East and Southeast Asia by the United Nations Office on Drugs and Crime, which specifically included USDT. In response, Tether stated that the company disregards USDT’s traceability.

Tether’s lack of financial transparency has also drawn criticism. With a market capitalization of $109.8 billion, USDT far surpasses its closest rival, USD Coin, with a market capitalization of $33.9 billion.

Cryptured Team
Cryptured Team
The writers team at is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.

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