Tether takes action against Venezuelan sanctions evasion
Key Takeaways
- In response to PDVSA’s growing use of cryptocurrency trading, Tether plans to freeze wallets that use USDT to circumvent US sanctions on Venezuelan oil.
- PDVSA also uses intermediaries to conceal the movement of funds.
- Tether confirms its commitment to OFAC compliance.
Stablecoin USDT issuer Tether has announced its next plans. It freezes all wallets using its currency to circumvent U.S. sanctions on Venezuelan oil exports.
This decision is as follows: Venezuela’s state-owned oil company PDVSA is increasingly turning to Tether to evade these sanctions. It was reinstated to address concerns about Venezuela’s political behavior and upcoming elections.
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PDVSA began using USDT last year to avoid the risks associated with cash transactions. International bank accounts are at risk of being confiscated by the United States. According to the company’s report, hire a broker It helps conceal the movement of funds and complicates tracking by regulators.
A Tether spokesperson said the company’s Commitment to comply with U.S. Treasury Office of Foreign Assets Control (OFAC) regulations; Statement:
Tether respects the OFAC SDN list and is working to ensure that sanctioned addresses are frozen immediately.
The broader context includes: OFAC’s interest in the cryptocurrency sector is growing. In September 2023, the agency froze Ethereum wallets linked to Mexico’s Sinaloa Cartel, which managed a money laundering operation that facilitated the sale of fentanyl.
In April, it also sanctioned over-the-counter cryptocurrency traders who aided North Korea’s Lazarus Group, the hackers responsible for large-scale cryptocurrency heists.
By aligning its operations with OFAC standards, Tether strengthens its position in the financial ecosystem and addresses challenges arising from the use of cryptocurrencies for sanctions activities.
With a master’s degree in Economics, Politics, and Culture in East Asia, Aaron wrote a scientific thesis analyzing the differences between Western capitalism and collective capitalism after World War II.
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