Tether, issuer of the world’s largest stablecoin, has been commended by the U.S. Department of Justice for supporting a major seizure operation.
Tether’s Role in the Operation
With Tether’s assistance, funds were frozen through blockchain tracing tools that helped restrict access to illicit assets. The company collaborated closely with law enforcement throughout the operation, highlighting growing cooperation between crypto firms and authorities in combating digital asset-related crimes.
Combatting Fraud and Regulation
Tether stated that the seizure aligns with its mission to promote compliance, transparency, and safety in the digital asset space. The company noted it has already frozen over $2.7 billion in USDT linked to suspicious activity. These efforts are supported by real-time blockchain monitoring tools and partnerships with more than 255 enforcement agencies across over 55 countries.
Support for the GENIUS Act
As the most widely used U.S. dollar-pegged stablecoin, Tether has long been at the center of regulatory debates. In response, the company has strengthened its compliance efforts, especially as the U.S. advances the GENIUS Act, which requires all dollar-based stablecoin issuers to implement systems capable of freezing funds linked to illegal activity. Tether has expressed its readiness to comply, calling the measure a key step toward ensuring the long-term security and credibility of stablecoins.
Tether's recognition from the U.S. Department of Justice underscores the importance of collaboration between crypto companies and government authorities in addressing financial crimes and supporting new regulatory initiatives.
