Tether joins hands with Chainalysis to enhance monitoring, detection and prevention of criminal activity using USDT.
Tether, the company behind stablecoin USDT, announced a partnership with blockchain analytics firm Chainalysis on May 2, to enhance secondary market monitoring capabilities. The new solution allows Tether to track USDT transactions, identify wallets involved in illegal or sanctioned activity, and provide critical information to authorities.
The solution includes tools such as Punishment Monitoring; Illegal money transfer detector;Tether Holders Classification and Largest Wallet Analysis. These tools assist Tether in detecting suspicious transactions, classifying users by groups (e.g. exchanges, darknet markets), and focusing on the activities of large USDT holders .
Mr. Paolo Ardoino, CEO of Tether, affirmed: “The partnership with Chainalysis marks an important step forward in our commitment to transparency and security in the cryptocurrency sector . Tether is always dedicated to maintaining the highest standards of integrity, and this partnership reinforces our proactive approach to protecting the ecosystem from illegal activity .”
The above move comes in the context that Tether faces many criticisms about USDT 's Vai in criminal activities and terrorist financing. US Senator Cynthia Lummis once called on the Department of Justice to investigate Tether and Binance over allegations of involvement in the Hamas attack on Israel. Besides, the report of the United Nations Office on Drugs and Crime also points out the role of USDT in crime financing in East and Southeast Asia.
Tether claims to have cooperated with 124 law enforcement agencies across 43 jurisdictions to tackle illegal activity. Cooperating with Chainalysis is XEM the next step to increase transparency and safety for the USDT ecosystem, contributing to building a healthy and trustworthy cryptocurrency environment.
