Tether recently froze over $150 million worth of USDT. This is not the first time the firm has frozen USDT, actions that have once again stoked centralization concerns in the crypto community.
According to data from the blockchainTether froze over $150 million worth of USDT on Jan. 13. This is not the first time that Tether has frozen funds in this way, and it has often been a point of contention within the crypto community. Three addresses were included in the blacklist.
No information has been provided as to why these funds were frozen. As a result of smart contract coding, Tether has the ability to freeze, destroy, or issue tokens at will, as well as blacklist addresses.
There are numerous incidents in the past where Tether did this, leading to a sizable and vocal part of the crypto community urging the use of Tether. stablecoins decentralized as DAI. Much of the market for stablecoins it is made up of centralized stablecoins like USDT and USDC.
However, some have pointed out that a considerable amount of DAI is backed by USDC, which also presents risks.
But the most controversial aspect of Tether remains the backing of its offering. With more than 76 billion USDT in circulation, Investors have wondered what would happen if their reserves couldn’t cover everything. In December 2021, Tether minted 1 billion USDT on the blockchain TRON.
Tether has said that it has a variety of assets that account for its circulation, but investors and analysts have wanted a reliable audit. The network’s operations even caught the attention of the United States Commodity Futures Trading Commission, which found no problem but imposed a $41 million fine.
Tether’s controversial reputation continues until 2022
Tether has a long history of generating controversy and more recently faced another lawsuit. Two investors in New York sued Tether, complaining that the project had misled them about their reservations.
Meanwhile, Tether has been trying to appease regulators. Announced in November 2021 that would cooperate with legislators around the world to meet compliance standards.
The company will have to make sure it doesn’t upset legislators and investors further, as regulation of stablecoins increases in major economies.
The stablecoins have become a major concern for governments, which they fear that it could affect the sovereignty of national currencies. Since USDT is the stablecoin most popular on the market, could be the main target for regulators.
All information contained on our website is published in good faith and for general information purposes only. Any action that the reader takes on the information found on our website is strictly at their own risk.
We would like to thank the author of this short article for this amazing material
Tether Freezes $150M USDT, Blacklists 3 Addresses – BeInCrypto