Tether has refused to freeze addresses associated with transaction mixing service Tornado Cash without appropriate requests from law enforcement.
According to the company:
“So far, OFAC has not advised that an issuer must freeze secondary market addresses published on the SDN list or operated by individuals and entities subject to OFAC sanctions. In addition, no law enforcement agency or US regulator has made such a request, despite our close contacts.”
According to a press release, the company considers blocking addresses unilaterally a “reckless and destructive” measure. According to experts, such actions may adversely affect law enforcement investigations.
Tether has criticized Circle, the company behind the USDC stablecoin, which blacklisted addresses associated with the mixing service.