Striving for Compliance! Tether Utilizes Chainalysis' Customized Monitoring Tools to Strengthen Sanctions Against Illegal Activities

The stablecoin USDT issuer Tether's latest announcement reveals that the company has partnered with the blockchain analysis firm Chainalysis. Through the tools provided by Chainalysis, Tether will be able to monitor addresses involved in sanctioned or illicit activities in real-time and take immediate action on the funds, aiming to fully comply with regulatory enforcement.

Tether Uses Chainalysis Tools to Monitor Illegal Activities

In a statement released on Thursday, Tether revealed that Chainalysis will provide custom professional tools to assist the company in monitoring illegal activities in the secondary market to enhance regulatory efficiency.

Through the aforementioned analytical tools, Tether will be able to strengthen market insights and identify wallets that may be associated with illegal activities:

The solution includes tools for monitoring sanctioned addresses, detecting illegal fund transfers, wallet classification, and analysis of whale wallets.

• Sanctioned Address Monitoring: Provides a list of addresses and transactions involving sanctioned entities
• Illegal Fund Transfer Monitoring: Monitors suspicious transactions related to funding terrorist activities or money laundering
• Wallet Classification: Classifies USDT holders by type, such as exchanges or the dark web
• Whale Wallet Analysis: Monitors significant or large USDT holders and their activities

Previously, Tether was questioned by U.S. Senators Cynthia Lummis and French Hill, urging the U.S. Department of Justice to conduct a thorough investigation into Tether and Binance to determine if they were involved in funding Hamas terrorist activities.

U.S. Lawmakers Urge DOJ to Investigate Binance and Tether

Tether CEO: Committed to Enhancing Transparency and Security

Meanwhile, Tether's CEO, Paolo Ardoino, stated in the announcement:

Our collaboration with Chainalysis is an important step in our commitment to establishing transparency and security in the cryptocurrency industry, further strengthening our determination and means to address illegal activities and actively protect the ecosystem.

Despite the impressive first-quarter financial results with a net profit of $4.52 billion, Tether seems to continue its regulatory efforts.

Last month, Tether came under scrutiny as its USDT was used as a payment method for Venezuela, which is subject to U.S. oil sanctions. Tether responded promptly, stating that it would fully cooperate with the U.S. Office of Foreign Assets Control (OFAC) regarding sanctions and freeze assets related to sanctioned addresses.

Responding to Venezuela's Adoption of USDT, Tether: Will Fully Cooperate with U.S. Sanctions

Expanding into the AI Industry, Investing in Brain-Machine Technology Companies

As the world's largest stablecoin issuer, Tether's financial transparency and market dominance have faced criticism; however, the company continues to cooperate with law enforcement agencies worldwide to freeze illicit assets related to fraud and criminal cases.

In March this year, Tether announced the establishment of an artificial intelligence division, Tether data, signaling its foray into the AI field.

A few days ago, its venture capital arm, Tether Evo, also invested in the renowned brain-machine interface BCI technology company Blackrock Neurotech, injecting $200 million into the development of its medical solutions.