Tether, the world’s largest stablecoin by market cap, may be violating US Treasury sanctions against Tornado Cash. washington post.
Tornado Cash Conflicts with US Treasury Department
On August 8, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) added cryptocurrency mixer Tornado Cash to its list of sanctioned companies.
The agency claims that Tornado Cash enabled North Korean hackers and other criminal gangs to launder billions of dollars in maliciously obtained cryptocurrency.
In response to the sanctions, several US companies have moved to cut ties with mixers. Including Circle, which blacklisted USDC accounts belonging to the organization, and his Github, which removed developer access to its platform.
The impact of sanctions has highlighted the role of regulators in public policy decisions, particularly those related to privacy and individual liberties. Furthermore, Tornado Cash is just software.
In the broader context, as a result of sanctions, cryptocurrency companies have expressed confusion about how to remain compliant with the law.
According to an analysis conducted by the Washington Post, Tether did not follow Circle’s precedent of blacklisting USDT accounts linked to Tornado Cash.
Tether says US sanctions rules do not apply to its operating jurisdiction
There has been no response from US government officials regarding this matter. His CTO of Tether, Paolo Ardoino, confirmed that the company “has not been contacted by U.S. officials or law enforcement regarding the request.”
He added that it was unclear whether Tether, as a Hong Kong-based company, would be required to comply with U.S. Treasury sanctions rules. It’s not a board[ing] This means that the company is not obligated to comply with US sanctions regulations.
Scott Anderson, a former government attorney who now works for the Brookings Institution, commented that the sanctions restrictions apply to U.S. persons, companies and entities doing business in the United States.
However, he is unsure as to whether Tether is currently ignoring the rules due to its current stance on the matter. I warned you that you could be exposed to
“I don’t know if Tether falls into that range. But if they (or their employees) might, non-compliance could carry real legal risks.