- JPMorgan analysts believe that OFAC is entitled to “some control” over the Tether stablecoin.
- It is about offshore transactions with USDT, experts note.
- Tether’s CEO responded by saying that JPMorgan is “jealous” of his company’s evolution of financial and payment services.
Analysts at JPMorgan Financial Group published a report in which they stated the right of the U.S. Office of Foreign Assets Control (OFAC) to supervise the Tether steiblcoin, The Block writes.
According to the document, it is about offshore operations using the asset. The company said that an example for the need for such control can be the connection between Tether and the under-sanctioned cryptomixer Tornado Cash.
OFAC imposed restrictions against the service in August 2022. Tornado Cash was accused of facilitating money laundering, and the project’s founders were suspected of collaborating with North Korean hacker group Lazarus Group.
Tether initially refused to block addresses associated with the mixer. The firm’s management claimed that they had not been requested to do so by US authorities. However, the issuer later froze the stablecoins that were stored on the sub-sanctioned wallets.
Tether CEO Paolo Ardoino said JPMorgan was “jealous” of his company’s evolution in financial and payment services. He believes the conglomerate has ignored the innovative industry for decades, missing out on great opportunities for growth.
“If I were them, I would be more concerned about JPMorgan’s fines totaling $39 billion,” Ardoino noted.
In early February 2024, representatives of the conglomerate said that the growing dominance of Tether has a negative impact on the crypto market. According to Paolo Ardoino, such statements are “a bit hypocritical” when they come from the largest bank in the world.
Recall, we wrote that JPMorgan Chase raised the rating of Coinbase shares amid the rate hike.
