- The Biden administration received a letter from US senators on April 28.
- The letter addressed concerns about the use of USDT stablecoin by various countries, including Russia, to evade sanctions.
- The senators stressed the importance of adhering to sanctions policies and proposed potential expansion of powers to enforce compliance.
As per official documents cited by The Wall Street Journal (WSJ), Senators Elizabeth Warren and Roger Marshall sent a letter to multiple government departments, including the Department of the Treasury and the Department of Defense, on April 28, 2024.
The letter sought clarification on the potential utilization of Tether’s USDT stablecoin by countries like Russia, Iran, and North Korea. In the event of any violations, Tether has expressed willingness to freeze the wallets associated with organizations circumventing sanctions using their stablecoin.
Reports emerged in late April that Tether had committed to blocking addresses under sanctions imposed by the Office of Foreign Assets Control (OFAC). This revelation followed media claims of the Venezuelan state oil company, PDVSA, using USDT stablecoin to evade US restrictions.
Furthermore, it was previously reported that Tether had frozen 161 wallets in December 2023 as part of enhanced security measures.