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Tether to Freeze Wallets Involved in Evading Venezuelan Sanctions

In response to reports of PDVSA using USDT to bypass U.S. sanctions, Tether has committed to freezing wallets linked to sanctioned activities.

Overview

  • Tether announced it will freeze any wallets linked to evading U.S. sanctions on Venezuelan oil exports, following reports of PDVSA's increased use of USDT.
  • Venezuela's state-run oil company, PDVSA, has been using USDT to facilitate oil transactions and avoid U.S. sanctions, leveraging intermediaries for added anonymity.
  • The U.S. Treasury has not renewed a general license allowing certain oil transactions with Venezuela, intensifying the need for PDVSA to find alternative transaction methods.
  • Tether has previously frozen wallets linked to various sanctioned activities, showcasing a pattern of compliance with global regulatory standards.
  • Venezuela's reliance on cryptocurrencies like USDT highlights the broader trend of sanctioned states turning to digital currencies to bypass international restrictions.