Stablecoin issuer Tether acknowledged it has no longer too long ago onboarded the U.S. Secret Service into its platform, and is at this time in the strategy of doing the same for the Federal Bureau of Investigations (FBI).

In a Dec. 15 letter addressed to Senator Cynthia M. Lummis and Congressman J. French Hill, Tether CEO Paolo Ardoino highlighted a wallet-freezing policy launched by the firm earlier this month, designed to toughen the tools accessible to law enforcement companies in terms of tackling the illicit consume of stablecoins.

“Our alignment with the Build of business of Foreign Assets Regulate (OFAC) Specially Designated Nationals (SDN) List is a proactive stance in safety, no longer merely a compliance measure,” wrote Ardoino.

“Tether no longer too long ago onboarded the US Secret Service into our platform and is in the strategy of doing the same with the Federal Bureau of Investigation (FBI). These strategic relationships make stronger our dedication to supporting law enforcement in combating substandard activities and contributing to the restoration of victims’ funds,” he added.

He famous that Tether had assisted the DOJ, Secret Service and FBI with freezing 326 wallets which collectively held around $435 million USDT.

The letter turned into a note-as a lot as one more 31-page letter despatched in November, in which Ardoino outlined the an limitless preference of Anti-Money Laundering (AML) and Know Your Customer (KYC) insurance policies that the stablecoin firm had adopted.

Each and every letters seem like in step with contributors of Congress’ concerns over the alleged consume of stablecoins to finance illicit exercise, together with dread funding.

Bigger than 100 contributors of Congress, together with Senator Elizabeth Warren, signed an Oct. 17 letter to Nationwide Security Adviser Jake Sullivan and Undersecretary for Terrorism and Financial Intelligence Brian Nelson, urging them to behave “all of sudden and categorically” to curtail illicit crypto exercise.

They cited a Wall Avenue Journal myth that the militant community Palestinian Islamic Jihad (PIJ) had “basically used the stablecoin tether” to transact, and held accounts at crypto change Binance. Ardoino criticized the WSJ myth in an X submit, pronouncing that the availability of the article turned into neither a Tether spokesperson nor an employee.