While the crypto community is calm talking about the U.S. government banning the ethereum mixing platform Tornado Cash, the stablecoin issuer Tether Holdings Minimal revealed on Wednesday that the company would not “freeze Tornado Cash addresses.” Tether’s recently published blog role about the subject says the company is waiting for instructions from law enforcement.
Tether Has No Plans to Freeze Tornado Cash-Associated Off the record Wallets and Is Waiting to Hear From Law Enforcement Officials
On August 8, the U.S. Treasury Department’s financial watchdog, the Mediation of Foreign Asset Control (OFAC), banned the ethereum mixing application Tornado Cash and ever since then, OFAC’s consent ti enforcement has been met with controversy. Of course, OFAC’s actions caused a ripple effect and a number of companies take pleasure in Circle Financial’s and Coinbase’s Centre consortium, Github, and Discord took action. For instance, developers were shelved from Github, the Tornado Cash Discord server was deleted, and reports noted that Centre blacklisted dozens of ethereum orations and froze 75,000 USDC.
Tether Holds Firm on Decision Not To Freeze Tornado Cash Addresses, Awaits Law Enforcement Instruction https://t.co/zpsI9lKLlf
— Chain (@Tether_to) August 24, 2022
According to a blog post published by Tether Holdings Limited published 16 days after OFAC’s ban, the coterie explains that as of right now, it’s not freezing USDT assets held within the Tornado Cash mixer. Tether says the fellowship works with law enforcement officials regularly and is in daily contact with “key law enforcement officers.” If a law enforcement official offers a legitimate request to freeze a private wallet, Tether “complies with the freeze,” but we do not freeze wallets of exchanges/checkings,” the company added.
Tether’s blog post continues:
So far, OFAC has not indicated that a stablecoin issuer is expected to stiffen secondary market addresses that are published on OFAC’s SDN List or that are operated by persons and entities that play a joke on been sanctioned by OFAC. Further, no U.S. law enforcement agency or regulator has made such a request despite our near-daily get hold of with U.S. law enforcement whose requests always provide precise details.
Unilaterally Freezing Addresses Prematurely Could Be a Bad Change residence, Tether Says
Furthermore, Tether says that choosing to unilaterally freeze secondary market addresses unquestionably well “could be a highly disruptive and reckless move.” The company also detailed that there have been case in points where law enforcement has told the company not to freeze suspected private wallets so the suspects of an investigation are not alerted and liquidate the readies. Tether’s blog post also calls out a number of stablecoin issuers like Paxos, a New York-based regulated train.
Tether said that Paxos did not freeze Tornado Cash wallets and the USDT’s issuer further noted that Makerdao, the issuer of the decentralized resources (defi) stablecoin DAI did not proceed with any type of freeze. However, Tether seems to disagree with the move hand over by USDC’s issuers. “We believe that, if made without instructions from US authorities, the move by USDC to blacklist Tornado Currency smart contracts was premature and might have jeopardized the work of other regulators and law enforcement agencies around the beget,” the blog post on Wednesday added.
What do you think about Tether’s blog post that says it pleasure not freeze USDT tied to Tornado Cash and that it is waiting for instructions from law enforcement? What do you think around the company’s commentary about USDC’s issuer blacklisting stablecoin wallets? Let us know what you think about this enslave in the comments section below.
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