- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2022-08-25T16:54:00
Cryptocurrency platform Tether is set to defy U.S. sanctions by holding firm on its refusal to freeze relevant Tornado Cash addresses until receiving further instruction from law enforcement agencies.
The Treasury Department’s Office of Foreign Assets Control (OFAC) stirred controversy earlier this month when it sanctioned Tornado Cash, an Ethereum-based virtual currency mixer, over allegations the platform “failed to impose effective controls” to stop the laundering of proceeds from cybercrime. The designation has drawn criticism from industry stakeholders in addition to politicians, with Rep. Tom Emmer (R-Minn.) sending a letter to Treasury Secretary Janet Yellen on Tuesday demanding clarity on the move.
Tether, a stablecoin issuer, shared its concerns in a news release Wednesday. Though the company says it does not operate in the United States, it abides by OFAC sanctions as part of its compliance efforts.
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The Treasury Department is seeking public input on how to address illicit finance and national security risks posed by digital assets, part of a multipronged push by the Biden administration to hold bad actors accountable and identify potential enforcement and regulatory gaps.
The Securities and Exchange Commission’s move to classify nine cryptocurrencies as securities as part of insider trading charges it brought against a former Coinbase manager has touched a nerve with other regulators, particularly the Commodity Futures Trading Commission.
The Department of the Treasury announced first-of-their-kind sanctions against virtual currency mixer Blender.io for its alleged role in a significant virtual currency heist carried out by a North Korean state-sponsored cyber hacking group.
The U.K. has issued 56 new sanctions against entities and individuals involved with Russia’s war effort, including several private mercenary groups operating in Africa that are connected to the Kremlin.
Global sanctions rules are increasing rapidly, as are tools to detect and punish those who break them. In response, the U.K. government is creating a new Office of Trade Sanctions Implementation to investigate and penalize those who break sanctions rules.
Five individuals and seven entities in Iran, China, and Hong Kong have been targeted for U.S. sanctions by the Treasury Department’s Office of Foreign Assets Control for helping to obtain components used in Iran’s missles and drones.
