While the crypto neighborhood remains to be speaking in regards to the U.S. authorities banning the ethereum mixing platform Tornado Cash, the stablecoin issuer Tether Holdings Limited revealed on Wednesday that the corporate wouldn’t “freeze Tornado Cash addresses.” Tether’s lately revealed weblog put up in regards to the topic says the corporate is ready for directions from regulation enforcement.

Tether Has No Plans to Freeze Tornado Cash-Associated Private Wallets and Is Waiting to Hear From Law Enforcement Officials

On August 8, the U.S. Treasury Department’s monetary watchdog, the Office of Foreign Asset Control (OFAC), banned the ethereum mixing software Tornado Cash and ever since then, OFAC’s sanctions enforcement has been met with controversy. Of course, OFAC’s actions triggered a ripple impact and a variety of firms like Circle Financial’s and Coinbase’s Centre consortium, Github, and Discord took motion. For occasion, builders have been suspended from Github, the Tornado Cash Discord server was deleted, and reviews noted that Centre blacklisted dozens of ethereum addresses and froze 75,000 USDC.

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

According to a blog post revealed by Tether Holdings Limited revealed 16 days after OFAC’s ban, the corporate explains that as of proper now, it’s not freezing USDT property held inside the Tornado Cash mixer. Tether says the corporate works with regulation enforcement officers frequently and is in day by day contact with “key law enforcement officers.” If a regulation enforcement official offers a authentic request to freeze a personal wallet, Tether “complies with the freeze,” however we don’t freeze wallets of exchanges/providers,” the corporate added.

Tether’s weblog put up continues:

So far, OFAC has not indicated {that a} stablecoin issuer is predicted to freeze secondary market addresses which are revealed on OFAC’s SDN List or which are operated by individuals and entities which have been sanctioned by OFAC. Further, no U.S. regulation enforcement company or regulator has made such a request regardless of our near-daily contact with U.S. regulation enforcement whose requests all the time present exact particulars.

Unilaterally Freezing Addresses Prematurely Could Be a Bad Move, Tether Says

Furthermore, Tether says that selecting to unilaterally freeze secondary market addresses very effectively “could be a highly disruptive and reckless move.” The firm additionally detailed that there have been cases the place regulation enforcement has instructed the corporate to not freeze suspected non-public wallets so the suspects of an investigation will not be alerted and liquidate the funds. Tether’s weblog put up additionally calls out a variety of stablecoin issuers like Paxos, a New York-based regulated firm.

Tether mentioned that Paxos didn’t freeze Tornado Cash wallets and the USDT’s issuer additional famous that Makerdao, the issuer of the decentralized finance (defi) stablecoin DAI didn’t proceed with any sort of freeze. However, Tether appears to disagree with the transfer made by USDC’s issuers. “We believe that, if made without instructions from US authorities, the move by USDC to blacklist Tornado Cash smart contracts was premature and might have jeopardized the work of other regulators and law enforcement agencies around the world,” the weblog put up on Wednesday added.

What do you consider Tether’s weblog put up that claims it is not going to freeze USDT tied to Tornado Cash and that it’s ready for directions from regulation enforcement? What do you consider the corporate’s commentary about USDC’s issuer blacklisting stablecoin wallets? Let us know what you consider this topic within the feedback part beneath.

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