Tether Takes Stand Against Sanctions Evasion in Venezuela, Freezes USDT Wallets Linked to PDVSA

Tether, the stablecoin issuer, has announced its intention to freeze wallets found to be using USDT to circumvent sanctions on Venezuelan oil exports, as reported by Reuters. This decision follows revelations that Venezuela's state-run oil company PDVSA had increased its reliance on Tether after the United States reimposed sanctions on the country's oil exports. Tether had previously frozen 41 wallets linked to the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) list in December. A spokesperson for Tether stated the company's commitment to adhering to the OFAC SDN list and ensuring that sanctioned addresses are appropriately frozen. PDVSA's adoption of USDT, which commenced last year, has seen a surge amid concerns over Venezuela's upcoming election and the impact of U.S. sanctions. This move towards cryptocurrencies comes after Venezuela's initial crypto initiative, the Petro, was discontinued earlier this year due to low adoption rates. By utilising cryptocurrencies, PDVSA and its partners aim to evade transacting in cash susceptible to seizure by the U.S., often employing intermediaries to obscure transaction trails. This development aligns with OFAC's increased scrutiny of the crypto industry, exemplified by recent fines imposed on entities facilitating sanctions evasion.