Summary

Tether, the developer of the USDT stablecoin, has sent letters to lawmakers in the US in response to demands for the Department of Justice (DOJ) to step in over illegal USDT transactions. Tether highlights its commitment to fighting illicit use of stablecoins and emphasizes its KYC procedure and proactive approach to monitoring transactions. The company also mentions employing surveillance monitoring techniques and utilizing Chainalysis’s Reactor tool to track client activities.

Introduction

Tether, the developer of the USDT stablecoin, has responded to demands from lawmakers in the US regarding the Department of Justice’s (DOJ) intervention over illegal USDT transactions. In letters sent to members of the United States House Financial Services Committee and the U.S. Senate Committee on Banking, Housing, and Urban Affairs, Tether outlines its commitment to combatting the illicit use of stablecoins.

Main Points

Tether emphasizes its KYC procedure and proactive approach to monitoring transactions. The company states that its evaluation process for customers goes beyond onboarding and includes surveillance monitoring techniques. Tether also mentions that it obtains information on secondary market risk and utilizes Chainalysis’s Reactor tool to track client activities.

Conclusion

Tether’s response to demands for DOJ intervention highlights its efforts to prevent illegal USDT transactions. The company’s commitment to fighting illicit use of stablecoins is reinforced by its KYC procedure, proactive approach to monitoring transactions, and utilization of surveillance monitoring techniques. Tether aims to ensure compliance and contribute to the overall integrity of the cryptocurrency market.