- OFAC has not indicated that a stablecoin issuer is expected to freeze secondary market addresses that are published on OFAC’s SDN List or that are operated by persons and entities that have been sanctioned by OFAC. Further, no US law enforcement agency or regulator has made such a request despite our near daily contact with US law enforcement whose requests always provide precise details.
- Unilaterally freezing secondary market addresses could be a highly disruptive and reckless move by Tether. Even if Tether recognizes suspicious activities on such an address, completing a freeze without the verified instruction of law enforcement and other government agencies might interfere with ongoing and sophisticated law enforcement investigations.
- We’d like to note that other digital asset providers, for example Paxos, a NY-regulated stablecoin that issues BUSD and USDp, and accounting for ~$20B of the total cryptocurrency market capitalization, haven’t frozen Tornado Cash wallets.
- 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.
- It should also be noted that DAI, an algorithmic stablecoin that accounts 36% of its reserves in USDc (around 3.4B USD) also didn’t proceed with any freeze.
Alexey Pertsev, a Tornado Cash developer arrested in August by Dutch authorities over allegations of facilitating money laundering, is to stay in jail for at least another two months after his appeal was rejected.
We are supporting USDC with an eye on a number of use cases that make it easy for developers to build on top of Block’s tbDEX protocol and its Web5 decentralized identity platform.
This quarterly free magazine in PDF format allows you to digest all of the information on your time in polished written form. Possessing your own PDF copy of each issue allows offline reading without distraction and easy archiving.