United States Senators wrote to various departments regarding the possible use of Tether’s stablecoin by North Korea, Iran, and Russia as a means of evading US sanctions.
Senators Elizabeth Warren and Roger Marshall questioned the Biden administration on multiple occasions on Russia, Iran, and North Korea’s potential use of the USDT stablecoin, as reported by The Wall Street Journal (WSJ) and supported by government documents.
As per the document, Russian enterprises were able to buy drone and other equipment components overseas by using the USDT stablecoin, which was backed by the US dollar, to get over sanctions.
Senators questioned whether the Joe Biden administration and the Department of Defense agreed with the Treasury Department’s request for further authority in light of this development.
Earlier in April, Wally Adeyemo, the deputy secretary of the Treasury, stated that Congress would have to adopt new powers because of the active use of cryptocurrencies by North Korea, Hamas, and the Russian military-industrial complex.
Tether has made it clear on several occasions that it is working with US authorities and is prepared to freeze wallets connected to companies that are utilizing the stablecoin to get around sanctions.
Tether representatives pledged to block addresses that the Office of Foreign Assets Control (OFAC) has sanctioned in late April. The news was made public following media reports that the state oil corporation of Venezuela is evading US sanctions by utilizing the USDT stablecoin.
Also Read: U.S. Senators Urge Action on Crypto Use in Child Abuse Trade
