We are aware of the recent discourse surrounding the potential misuse of cryptocurrencies, particularly for illicit activities, that references Tether. We believe in direct and transparent communication and, accordingly, find it necessary to unequivocally address these concerns.

1. Addressing the Misinformation: Certain recent reports have emerged suggesting a significant volume of illicit funds channeled through cryptocurrencies. Independent investigations into these claims, from both Chainalysis and Elliptic, have revealed many of these reports – including reports published by the Wall Street Journal (WSJ) – to be predicated on highly erroneous interpretations of data. It is critical to realize that imprecise information not only fosters unwarranted concerns but also paints an unfair and skewed picture of Tether and the industry as a whole.

The WSJ does not seem to have retracted the article, despite being made aware of the oceanic discrepancy between their reported numbers and the real ones. Since October 7, reports have only identified $21,000 flowing to Gaza Now, the most popular public cryptocurrency fundraising campaign. In contrast, by October 19, Crypto Aid Israel had received over $185,000 in crypto donations for humanitarian purposes. Recent reports by Elliptic and Chainalysis have suggested that the figures noted in the recent article published by the WSJ in respect of financing Hamas operations using cryptocurrencies, are incorrect by a significant margin due to faulted attribution techniques. It simply shows the dishonesty of such a publication to be brazenly printing disinformation in order to generate page views.

2. Tether's Compliance and Due Diligence: Tether, as a pioneer and leading entity in the stablecoin industry, is uncompromising in its adherence to regulatory compliance and due diligence. Our stringent verification processes, continuous monitoring mechanisms, and collaborative approach with global law enforcement agencies affirm our unyielding commitment to deter and counteract illicit activities. There is simply no evidence that Tether has violated Sanctions laws or the Bank Secrecy Act through inadequate customer due diligence or screening practices.

3. Our Track Record Speaks for Itself: Our proactivity in safeguarding the integrity of our platform is well-documented:

• We have proactively collaborated with 31 law enforcement agencies across 19 jurisdictions to curb malicious activities.

• Since inception, our active measures have resulted in freezing a cumulative total of $835 million in assets tied to illicit activities, primarily hacks of cryptocurrency exchanges and DeFi platforms.

• Specifically addressing concerns about the Middle East, in alignment with the NBCTF in Israel, we have frozen 32 addresses associated with illicit activities, securing a total of $873,118.34. This is a drop in the ocean compared to cash and traditional financial industry yet Tether has remained vigilant and taken all necessary action to curb such illicit activity. In all, Tether has supported law enforcement in cases related to both Ukraine and Israel.

4. Transparency of Blockchain Technology and the Global Effort to Counter Terrorism: Blockchain, by its nature, maintains a transparent, immutable record of all transactions. This inherent transparency, contrary to popular misconceptions, makes blockchain less enticing for illicit activities when compared to the obscurities of traditional financial systems. Moreover, virtual asset service providers worldwide are constantly monitoring blockchains for potential high-risk connections, liaising with law enforcement, and filing suspicious activity reports to quickly mitigate identified nefarious on-chain activity at a rate that greatly exceeds the actions of the traditional financial sector.

5. Educating and Informing: We emphasize the importance of comprehensive education in this arena. Decision-makers, stakeholders, and the general public must correctly discern between conjecture and fact. We invite and encourage rigorous scrutiny based on factual, corroborated data rather than misinterpretation and misinformation.

Tether's ethos revolves around transparency, compliance, and proactive collaboration with relevant authorities worldwide. We are unwavering in our mission to champion the transformative potential of stablecoins, ensuring they are leveraged responsibly and ethically. Our door remains open for constructive dialogue, clarification, and collaboration as we continue to set industry benchmarks in integrity and security.