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Tether Blasts Circle for Not Doing Enough to Stop On-Chain Crime

Tether Blasts Circle for Not Doing Enough to Stop On-Chain Crime

CCNCCN2024/09/19 17:12
By:CCN

Key Takeaways

  •  Tether has criticized rival Circle for failing to address on-chain crime.
  • The stablecoin issuer said its competitors are not proactive in freezing wallets related to fraud.
  • Tether claims to have frozen around 1,850 wallets involved in illicit activities.

Tether , the world’s largest stablecoin issuer, has slammed its rival Circle for failing to freeze wallets related to fraud schemes. 

The comments follow Tether’s recent freezing and blocklisting of wallet addresses linked to the North Korean hacking group Lazarus . 

Tether Blasts Circle 

In a Sept. 18 blog post , the stablecoin issuer claimed it had frozen several wallets that its competitors had not—and directly called out Circle. 

Tether claimed that its closest competitors, such as Circle, only freeze wallets in response to direct legal orders. 

However, the stablecoin issuer claims to freeze wallets in collaboration with law enforcement or whenever necessary. 

“As a result, Tether has frozen many wallets that its competitors have not,” Tether wrote. 

Tether alleged that if Circle had frozen the same wallets as they did on the Ethereum blockchain, its competitor would have prevented $219 million of USDC from being sent from fraud-linked wallets.

There would have been 2.7 times more USDC saved than the $80 million that Circle “has frozen to date,” Tether wrote. 

Tether claimed that $96 million out of the $219 million was related to the Poly Network hack in August 2021. It also said that their “timely freezing of stolen USDT led to the hacker returning the stolen funds.”

A Leader in Supporting Law Enforcement 

Tether has labeled itself as an industry leader in supporting law enforcement agencies across the globe. 

“Through robust compliance measures via partnerships with organizations like Chainalysis and proactive illicit finance prevention through initiatives such as our T3 Financial Crime Unit, Tether has been instrumental in combating financial crime,” the platform wrote. 

The platform claims to have frozen around 1,850 wallets involved in illicit activities and recovered over $113.8 million in assets.

Tether, TRON, and TRM Labs Establishes Financial Crime Unit 

Earlier this month, Tether announced it was partnering with blockchain intelligence firm TRM Labs and TRON to create a Financial Crime Unit. 

Tron founder Justin Sun stated on X that the collaboration looks to ensure that “blockchain technology is used to make our world a better place and sends a clear message that illicit activity is not welcome in our industry.”

Tether noted that USDT on TRON has attracted scammers and other threat actors. 

“The establishment of the T3 FCU represents a significant step towards impeding the ability of malicious actors to launder and utilize the proceeds of crime, safeguarding the integrity of the TRON blockchain,” Tether said in a statement.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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