Tether prepared to defy controversial U.S. sanctions on Tornado Cash
Cryptocurrency platform Tether is set to defy U.S. sanctions by holding firm on its refusal to freeze relevant Tornado Cash addresses until receiving further instruction from law enforcement agencies.
The Treasury Department’s Office of Foreign Assets Control (OFAC) stirred controversy earlier this month when it sanctioned Tornado Cash, an Ethereum-based virtual currency mixer, over allegations the platform “failed to impose effective controls” to stop the laundering of proceeds from cybercrime. The designation has drawn criticism from industry stakeholders in addition to politicians, with Rep. Tom Emmer (R-Minn.) sending a letter to Treasury Secretary Janet Yellen on Tuesday demanding clarity on the move.
Tether, a stablecoin issuer, shared its concerns in a news release Wednesday. Though the company says it does not operate in the United States, it abides by OFAC sanctions as part of its compliance efforts.