In a move that has never been seen before, Tether (USDT) has disregarded penalties imposed by the Office of Foreign Assets Control (OFAC). Because OFAC does not indicate “that a stablecoin issuer is expected to freeze secondary market addresses,” the organization has made the decision to go against the recommendations of OFAC.
As a result, Tether maintained its position and came to the conclusion that sanctioned Tornado Cash addresses should not be frozen. Even posting a tweet on Twitter to explain its reasoning behind the decision, the business went to great lengths to explain its position.
Tether Holds Firm on Decision Not To Freeze Tornado Cash Addresses, Awaits Law Enforcement Instruction https://t.co/zpsI9lKLlf
— Tether (@Tether_to) August 24, 2022
What is the big deal here?
Tether has made a statement in which they underline that they have been complying with various regulatory and law enforcement officials. This information can be found in the statement. In addition to that, they have always provided the information and solutions at the exact time that they said they would.
Additionally, Tether maintained that no law enforcement agency had approached them with the request to freeze the assets of any secondary market addresses.
The Tether team continued its statement by saying,
“No US law enforcement agency or regulator has made such a request despite our near daily contact with US law enforcement whose requests always provide precise details.“
The corporation provided justification for its position and made certain that individuals are aware that the company is in compliance with all regulatory organizations.
Tether, on the other hand, has said that the act of freezing addresses might potentially exacerbate the volatility and unpredictability of the cryptocurrency market.
The corporation provided many examples of situations in which law enforcement had expressly requested that they refrain from freezing the addresses of certain individuals. It was stated that these individuals were suspected of engaging in criminal activities.
The Tether team expressed their disapproval of the USDC’s decision to freeze the addresses, stating that the action was taken too soon.
On social media, users’ reactions to Tether’s recent decision have been overwhelmingly positive, with many users expressing their approval of the company’s attitude.
It has also shed insight on their stablecoin, which is denoted by USDT. It has been the subject of some complimentary conversation on various social media platforms.
However, this occasion is not the only factor contributing to the rise in popularity of USDT during the past few days.
The digital asset trading platform known as Binance was widely anticipated to de-list the USDT coin. But for the time being, it has held up the de-listing process.
In addition, a large number of individuals have interpreted this to be a bullish indication. In addition, confidence in the stablecoins has been revived as a result of the incident. However, Binance has not provided any clear explanation for why the de-listing has been delayed.