Tether maintains its decision not to freeze Tornado Cash wallet address, awaiting instructions from law enforcement

Tether is working closely with law enforcement around the world to assist with investigations, including freezing wallet addresses. We are in contact with law enforcement officials on an almost daily basis and insist on responding to their requests in a timely manner. When Tether receives an applicable/legal request from a verified law enforcement agency to freeze a privately held wallet, the company will comply with the freeze (but not the exchange/service).

So far, the Office of Foreign Assets Control (OFAC) has not indicated that stablecoin issuers will freeze secondary market addresses posted on the OFAC SDN list, or addresses operated by individuals and entities sanctioned by OFAC. Also, no such request has been made by any U.S. law enforcement agency or regulator, although we engage with U.S. law enforcement on a near-daily basis, and their requests are always specific.

As mentioned above, this is the protocol we follow.

Unilaterally freezing secondary market addresses would be a highly disruptive and reckless move for Tether. Even if Tether becomes aware of suspicious activity on such addresses, completing the freeze without verification instructions from law enforcement and other government agencies could interfere with ongoing complex law enforcement investigations. In fact, in our communications with law enforcement, we are sometimes informed of addresses that may be involved in crimes and are specifically instructed not to freeze these addresses without express request from law enforcement, as this may alert the suspect to the Law enforcement investigations, resulting in funds being liquidated or abandoned transactions, and jeopardizing further connections that may have been established.

Tether is working closely with law enforcement around the world to assist with investigations, including freezing wallet addresses. We are in contact with law enforcement officials on an almost daily basis and insist on responding to their requests in a timely manner. When Tether receives an applicable/legal request from a verified law enforcement agency to freeze a privately held wallet, the company will comply with the freeze (but not the exchange/service).

So far, the Office of Foreign Assets Control (OFAC) has not indicated that stablecoin issuers will freeze secondary market addresses posted on the OFAC SDN list, or addresses operated by individuals and entities sanctioned by OFAC. Also, no such request has been made by any U.S. law enforcement agency or regulator, although we engage with U.S. law enforcement on a near-daily basis, and their requests are always specific.