Bloomberg: Aid Turkey Freeze $1 Billion Assets, Tether Remakes Compliance Boundary
Original Article Title: Crypto Giant Tether Aided Turkey in Billion Dollar Crackdown
Original Article Authors: Ryan Weeks, Todd Gillespie, Taylan Bilgic, Bloomberg
Original Article Translation: Luffy, Foresight News
On January 30, Turkish authorities announced the freezing of assets worth over $500 million belonging to Veysel Sahin, who is accused of operating an illegal gambling platform and money laundering. The Istanbul Chief Prosecutor revealed that an unnamed cryptocurrency company carried out this freezing operation at the request of the Turkish government.
This company is none other than Tether Holdings SA, the issuer of the $185 billion market cap stablecoin USDT. Recently, the company has actively assisted various governments worldwide in cracking down on various cryptocurrency-related criminal activities, including money laundering, drug trafficking, and sanctions evasion.
Tether CEO Paolo Ardoino stated in a recent interview with Bloomberg News, "Law enforcement reached out to us, provided relevant information, and after we verified the information, we took action in accordance with the laws of the relevant jurisdiction. We follow this process when cooperating with U.S. Department of Justice, FBI, and other agencies."

Tether did not provide further comment on the case. Bloomberg's attempts to contact Sahin were unsuccessful. A Turkish official also refused to disclose the name of the company mentioned in the prosecutor's statement.
The €460 million (approximately $544 million) in assets frozen in this operation is part of a large-scale law enforcement action in Turkey, where the total frozen assets related to the case now exceed $1 billion. According to Turkish TV channel NTV, a few days after the announcement of Sahin's asset freeze, another individual is under investigation for alleged money laundering and illegal gambling, with $500 million worth of cryptocurrency assets under their name also frozen. It is currently unclear whether this asset freeze involves tokens issued by Tether.
A Turkish official, who spoke on condition of anonymity to Bloomberg regarding sensitive legal matters, revealed that authorities, by tracing fund flows and analyzing cryptocurrency assets, discovered the "financial traces" of this suspected illicit income. They further stated that similar asset freeze actions will be taken in the future against individuals involved in illegal gambling and payment systems.
For Tether, this freezing action is just one of its increasingly frequent fund freezing operations, highlighting the cryptocurrency giant's ongoing efforts to enhance collaboration with global law enforcement agencies.
A report released by the analytics firm Elliptic in January showed that by the end of 2025, Tether and its competitor Circle Internet Group Inc. had blacklisted approximately 5700 wallets, involving around $25 billion in assets, a stark contrast to almost none two years ago. At the time of freezing, three-quarters of these wallets held USDT.
Arda Akartuna, Head of Cryptocurrency Threat Intelligence for the Asia-Pacific region at Elliptic, stated, "As legitimate cryptocurrency use and global payment integration accelerate, illicit activities are also on the rise, prompting stablecoin issuers to more actively intervene."
Tether often touts its efforts to combat criminal activities, including in its communications to attract potential investors, as the company seeks to raise funding at a valuation of up to $500 billion. According to its official website, Tether has assisted law enforcement agencies in 62 countries in handling over 1800 cases, freezing $3.4 billion worth of USDT associated with suspected illegal activities.
Nathan McCauley, Co-founder and CEO of Tether's partner Anchorage Digital Bank, said in an interview, "Their (Tether's) cooperative attitude is extremely positive, and among stablecoin issuers, the company has the 'best-known reputation' within law enforcement agencies."
Anchorage is the issuer of Tether's compliant USD stablecoin USAT, which was launched in late January, marking Tether's return to the U.S. market.
This represents a significant shift compared to a few years ago when Tether had a tense relationship with U.S. regulatory agencies. After a conflict with regulators in 2018, Tether largely exited the U.S. market and reached a $41 million settlement in 2021 over allegations of misrepresenting its reserve holdings.
However, the second Trump administration welcomed the cryptocurrency industry. Last year, Ardoino, along with several other executives, attended the signing ceremony where President Trump signed a stablecoin regulation bill.

Nevertheless, Tether's USDT continues to face regulatory scrutiny due to its widespread use by criminal elements.
On January 9, the U.S. Eastern District Federal Prosecutor's Office announced charges against a Venezuelan citizen for laundering $1 billion using USDT. A recent report by Elliptic revealed that the Central Bank of Iran had purchased over $500 million worth of USDT to alleviate a currency crisis and circumvent U.S. sanctions.
Turkish fugitive Sahin has been accused of leading an organization that laundered money for an illegal online gambling platform. According to local media, Sahin was sentenced to 10 years in prison in 2017, released in 2023, then sentenced to another 21 years a month later. Currently, his whereabouts are unknown, but Turkey's state-run news agency Anadolu Agency reported on January 30 that "relevant authorities are advancing the legal process to extradite him to Turkey."
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Debunking the AI Doomsday Myth: Why Establishment Inertia and the Software Wasteland Will Save Us
Editor's Note: Citrini7's cyberpunk-themed AI doomsday prophecy has sparked widespread discussion across the internet. However, this article presents a more pragmatic counter perspective. If Citrini envisions a digital tsunami instantly engulfing civilization, this author sees the resilient resistance of the human bureaucratic system, the profoundly flawed existing software ecosystem, and the long-overlooked cornerstone of heavy industry. This is a frontal clash between Silicon Valley fantasy and the iron law of reality, reminding us that the singularity may come, but it will never happen overnight.
The following is the original content:
Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.
In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.
When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."
Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.
A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.
I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.
Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.
But everyone overlooks one thing: the current state of these software products is simply terrible.
I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.
From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.
Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.
I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.
This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.
Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.
But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.
As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.
We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.
We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.
The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.
My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.
At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.
If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.
Source: Original Post Link

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