Tether (USDT) Strengthens Financial Transparency and Law Enforcement Collaboration

Peter
Zhang

Sep
18,
2024
13:05

Tether
(USDT)
bolsters
financial
transparency
and
law
enforcement
collaboration,
enhancing
global
financial
inclusion
and
security.

Tether
has
established
itself
as
a
pioneer
in
the
stablecoin
market
by
prioritizing
financial
transparency,
resilience,
and
collaboration
with
global
law
enforcement
agencies.
Over
350
million
users
worldwide
benefit
from
Tether’s
reliable
and
stable
digital
currency,
which
facilitates
access
to
financial
services,
particularly
in
regions
where
traditional
banking
systems
fall
short.

Financial
Transparency:
Unmatched
Clarity
and
Assurance

Tether’s
transparency
is
a
defining
feature,
reflected
through
its
independent
attestations
conducted
by
BDO,
a
leading
global
independent
accounting
firm.
The

Q2
2024
attestation
confirmed
that
Tether
holds
$118.4
billion
in
reserves,
exceeding
liabilities
by
$5.3
billion.
Cantor
Fitzgerald
CEO
Howard
Lutnick
has
publicly
praised
Tether’s
robust
backing,
stating,
“They
have
the
money,”
underscoring
confidence
in
Tether’s
asset
reserves.

Furthermore,
Tether
provides

daily
transparency
reports,
offering
unparalleled
insights
into
its
reserves.
This
level
of
openness
surpasses
that
of
many
traditional
financial
institutions,
demonstrating
Tether’s
dedication
to
consumer
protection
and
regulatory
compliance.

Commitment
to
Law
Enforcement
and
Combating
Financial
Crime

Tether
is
an
industry
leader
in
supporting
law
enforcement
agencies
globally.
Recognizing
its
role
as
the
biggest
stablecoin
in
the
world,
Tether
has
taken
proactive
measures
to
establish
direct
communication
lines
with
national
police
forces
to
assist
in
investigations
and
enact
wallet
freezes
for
criminal
activities.
Tether
has
hired
ex-law
enforcement
officers,
public
prosecutors,
bank
investigators,
and
analysts
from
blockchain
forensics
firms
to
represent
its
External
Investigations
Unit.

Through

robust
compliance
measures
via
partnerships
with
organizations
like
Chainalysis,
and
proactive
illicit
finance
prevention
through
initiatives
such
as
the

T3
Financial
Crime
Unit,
Tether
has
been
instrumental
in
combating
financial
crime.
Since
its
inception,
Tether

has
collaborated
with
180
agencies
across
45
jurisdictions,
freezing
approximately
1,850
wallets
involved
in
illicit
activities
and
recovering
over
$113.8
million
in
assets.

Recently,
Tether
took
decisive
action
against
the
notorious
North
Korean
hacker
group
Lazarus,
freezing
and
blacklisting
wallet
addresses
linked
to
the
group
that
contained
nearly
$5
million
in
stablecoins.
In

stark
contrast
to
its
closest
competitor,
Tether
swiftly
blocked
these
funds,
protecting
the
integrity
of
the
stablecoin
ecosystem.

In
notable
cases,
such
as
the
U.S.
Department
of
Justice’s
disruption
of
a
cyber
scam
organization,
Tether’s
swift
action
facilitated
the
seizure
of
nearly

$9
million
in
crypto.
The
DOJ

acknowledged
Tether
for
its
role
in
the
seizure
of
the
assets
and
would
do
so

again
and

again.
Additionally,
Tether’s
role
in
freezing
$225
million
linked
to
fraud
schemes
has
been
commended
by
authorities
for
its
effectiveness
in
thwarting
criminal
networks.

Addressing
Cryptocurrency
Fraud

Contrary
to
common
misconceptions,
cryptocurrency-related
fraud
is
not
unique
to
stablecoins.
According
to
a
CipherTrace
report
and
Nasdaq’s
“Global
Financial
Crime
Report,”
most
fraud
originates
outside
the
crypto
ecosystem,
primarily
involving
fiat
currencies.
Blockchain
technology,
including
Tether,
offers
superior
traceability
compared
to
traditional
financial
systems,
enabling
authorities
to
track
and
seize
assets
tied
to
illicit
activities.

To
date,
Tether
has
frozen
$1.86
billion
in
assets
connected
to
fraudulent
transactions,
reinforcing
its
commitment
to
preventing
misuse
of
its
stablecoin
technology.
By
collaborating
closely
with
law
enforcement
across
multiple
continents,
Tether
ensures
that
bad
actors
are
held
accountable
while
safeguarding
its
network
for
legitimate
users.

Tether’s
compliance
program
employs
leading
vendors
like
Refinitiv
World
Check,
Chainalysis,
and
TRM
Labs
to
monitor
customer
interactions
and
ensure
adherence
to
Know-Your-Customer
(KYC)
and
Anti-Money
Laundering
(AML)
regulations.

Financial
Inclusion
and
U.S.
Dollar
Dominance

Tether’s
role
extends
beyond
combating
financial
crime—it
is
a
driver
of
global
financial
inclusion.
In
regions
with
unstable
local
currencies,
Tether
provides
a
stable
alternative,
allowing
individuals
to
store
and
transfer
value
safely.
This
integration
into
the
global
economy
empowers
millions,
offering
them
the
opportunity
to
participate
in
international
commerce.

Tether’s
impact
on
the
U.S.
economy
is
significant.
As
the
18th
largest
holder
of
U.S.
debt
globally,
with
$97.6
billion
in
U.S.
Treasuries,
Tether
strengthens
the
resilience
of
the
U.S.
financial
system.
By
driving
demand
for
USD
through
its
USD₮/USD
peg
and
offering
customers
access
to
digital
dollars
on
the
blockchain,
Tether
reinforces
the
U.S.
dollar’s
position
as
the
dominant
global
reserve
currency.

With
over
350
million
users
worldwide,
Tether
provides
unprecedented
support
for
U.S.
dollar
hegemony.
In
regions
such
as
Latin
America
and
Asia,
where
access
to
USD
is
often
limited,
Tether’s
stablecoin
facilitates
broader
participation
in
dollar-based
transactions,
boosting
local
economic
activity
and
further
solidifying
the
dollar’s
global
dominance.

Resilience
and
Stability
Amid
Market
Volatility

Tether’s
ability
to
withstand
market
volatility
has
been
proven
time
and
again.
During
the
crypto
market
crash
triggered
by
Terra-LUNA’s
UST
depeg
in
May
2022,
Tether
redeemed
$10
billion
in
USD₮
within
a
week—over
12%
of
its
total
circulation—
and
$20
billion
in
USD₮
in
a
month,
without
any
disruption.

This
was
unprecedented
as
no
bank
in
the
world
could
process
the
withdrawal
of
even
12%
of
its
outstanding
liabilities
within
a
week.

In
fact,
the
size
of
USD₮
redemptions
over
those
two
weeks
in
May
2022
rivals
the
size
of
the
largest
banking
withdrawals
in
history.
This

distinction
is
held
by
requests
for
$16.7
billion
in
withdrawals
over
10
days
from
Washington
Mutual
which
led
to
its
collapse.

This
is
because,
unlike
banks,

USD₮
is
fully
reserved.

All
of
the
challenges
that
other
protocols
and
banks
face
are
only
problems
because
they
are
not
always
fully
reserved
with
high-quality
liquid
assets.
If
any
given
financial
system
doesn’t
have
enough
collateral
to
back
its
outstanding
liabilities,
it
faces
the
risk
of
collapse
if
it
is
hit
with
too
many
withdrawals
or
the
collapse
of
the
value
of
its
available
collateral.

By
contrast,
in
its
history,
Tether
has
consistently
fulfilled
redemption
requests
without
fail.
Despite
critics
attempting
to
frame
these
redemptions
as
a
weakness,
they
instead
highlight
Tether’s
unparalleled
liquidity
and
reliability.

A
Commitment
to
Security
and
Financial
Freedom

Tether
has
consistently
proven
its
ability
to
balance
security,
transparency,
and
financial
inclusion.
Its
collaboration
with
law
enforcement,
commitment
to
transparency,
and
proactive
approach
to
compliance
set
the
standard
for
the
stablecoin
industry.
Tether
is
not
just
a
stablecoin—it
is
the
foundation
of
a
new,
global
financial
system
that
promotes
both
freedom
and
security
for
everyone.

As
Tether
continues
to
lead
by
example,
it
remains
steadfast
in
its
mission
to
democratize
financial
access
through
technology,
ensuring
a
secure
and
inclusive
financial
future.

Image
source:
Shutterstock