Tether to Freeze Addresses Evading Sanctions on Venezuelan Oil Exports
Tether, the issuer of the popular stablecoin USDT, has announced its intention to freeze addresses associated with sanctioned entities.
The move comes in response to allegations that Venezuela’s state-run oil company, PDVSA, has been utilizing Tether to bypass sanctions imposed on its crude oil and fuel exports.
Tether has said it is committed to complying with the Office of Foreign Assets Control (OFAC) sanctions list and ensuring the prompt freezing of addresses linked to sanctioned entities.
A recent Reuters report shed light on the alleged use of cryptocurrencies by PDVSA to facilitate its oil exports amidst newly reimposed oil sanctions by the United States.
The U.S. Treasury Department has mandated that PDVSA customers and providers wind down transactions by May 31 due to Venezuela’s failure to implement electoral reforms .
According to anonymous sources cited in the report, the reimposed sanctions will pose challenges for Venezuela in expanding its oil production and exports, as companies will require U.S. authorizations to conduct business with the country.
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