Chainalysis will help Tether monitor secondary market for illicit activity

Tether will have the ability to monitor the secondary market for its stablecoin, thanks to a solution created by blockchain analysis firm Chainalysis. The new capabilities will allow Tether to gain market insights and identify wallets that may be tied to illicit or sanctioned addresses.

The new solution will consist of several tools. Tether listed four of them in an announcement on its website. Sanctions Monitoring will provide a list of addresses and transactions that involve sanctioned entities. Illicit Transfer Detector will spot transactions that are potentially associated with activities such as terrorism financing.

Categorization will classify Tether USDTUSD holders by type, such as exchange or darknet market. Largest Wallet Analysis will focus on “significant” USDT holders and their activities. Tether CEO Paolo Ardoino said:

Tether has collaborated with authorities in 43 jurisdictions “to address illicit activities,” the announcement pointed out. Nonetheless, the company has come under fire for the stablecoin’s alleged role in criminal activities and terrorism financing.

Tether even ran afoul of pro-crypto United States Senator Cynthia Lummis, who sent a letter to Attorney General Merrick Garland demanding an investigation of the role Tether and Binance played in the Hamas attacks on Israel in October. She and cosigner Representative French Hill alleged that Tether was “knowingly facilitating violations of applicable sanctions laws.”