Crypto company Tether freezes accounts linked to terrorism in Israel and Ukraine

A cryptocurrency issuer has frozen a number of accounts linked to terrorism.

Tether – which controls stablecoin, a digital currency designed to have a constant value of $1 to avoid the wild price swings of other cryptocurrencies such as Bitcoin – said yesterday it had frozen accounts worth 718,305 pounds because there are alleged links to terrorism in Israel and Ukraine.

A spokesperson revealed that the company has frozen 32 crypto accounts due to “illegal activities.”

Tether said it worked with Israel’s National Bureau for Counter-Terror Financing (NBCTF) to “combat cryptocurrency-funded terrorism and warfare.”

The company did not provide details about the owners of the frozen accounts or the division between those linked to Ukraine or Israel.

Terror threat: Tether – which controls stablecoin – said it had frozen accounts worth £718,305 because of alleged links to terrorism in Israel and Ukraine

Tether’s decision is likely to further fuel criticism of the cryptocurrency sector.

Many have previously argued that the ability to use anonymous crypto wallets – strings of numbers and letters that identify a user when sending and receiving digital currency – makes it much easier for terrorists and other criminals to transfer money undetected.

Last week, Israeli authorities said they had frozen cryptocurrency accounts used to solicit donations for Hamas, the Palestinian terror group that carried out attacks on the country earlier this month that killed around 1,400 people.

The country has in the past seized crypto accounts linked to Hamas, as well as others linked to militant groups such as the Islamic State (ISIS).

Tether boss Paolo Ardoino said his company is working with authorities to track illegal money movements.