Tether Freezes Three Other Addresses Holding Over $150 Million in USDT – DiarioBitcoin

For Hannah Perez

The company had already frozen funds to an address with a million dollars in USDT at the end of December. The reasons for the latest lockdowns are unknown.

***

The issuing company of stablecoin USDT, Tether, has blocked three new addresses holding more than $150 million in funds. the news media CoinDesk reported, citing data provided by Etherscan Y Bloxy.

According to the report, Tether added three addresses Ethereum to their blacklist on Thursday this week. The function, called “Added Blacklist”, allows the company to freeze USDT funds deposited in addresses, disabling its users from moving the money.

One of the addresses has US$100,000,080 in USDT, another holds around US$59.9 million in the stablecoin and a third just under $10,000 in the same stablecoin. Total, the three addresses blocked by Tether They hold close to $160 million in USDT.

DIRECCIONES BLOQUEADAS TETHER min
Data of Bloxy show the latest addresses added to the Tether blacklist

The news comes a few days after the company froze funds from another email address. Ethereum. as reported DailyBitcoin. Tether had added an address with more than a million dollars in various cryptocurrencies to its blacklist. The action disabled nearly $1 million in USDT deposited at that address.

More than 500 addresses blocked since 2017

In neither of the last two cases Tether has indicated the reasons for which it has carried out the blocking of the accounts. It is also unknown who are the users or entities that own said addresses, as well as the origins of said millionaire funds.

At the beginning of January the news outlet The Block had contacted the company to inquire about blocking the address with more than one million funds in USDT. A spokesman for Tether responded at the time that the firm regularly works with regulators and law enforcement agencies around the world, including on any cases involving hacking and scams.

Director of Arcane Asset, Eric Wall, had already pointed out in 2020 that some reasons for the blacklisting of addresses and freezing of funds by Tether could be carried out as precautionary measures for possible associations with crimes or scams.

Being a centralized firm, Tether it has the ability to block funds from addresses that could be involved in criminal activities such as money laundering. During 2021 alone, the company added more than 300 addresses to its blacklist, of these, seven blocks were carried out in December. The figure rises to a total of 563 addresses Ethereum Blocked since 2017.

While other issuers of stablecoins centralized, such as USDC of Circle, they also have the ability to block funds involved in suspicious activities, this ability of some companies to monitor users’ private addresses has caused concern in the past. In fact, some argue that this capability undermines the decentralized nature of crypto.

If anything, these concerns may be working as a driver for decentralized stablecoins like DAI and TerraUSD (UST). In recent weeks, the stablecoin algorithm of Terra it has become the largest decentralized asset of its kind, reaching a capitalization of USD $28 billion. Although, despite this impulse, the stablecoins Centralized companies continue to dominate the market. USDT alone has a capitalization of more than $78 billion at press time.


Recommended reading


Article by Hannah Estefanía Pérez / DailyBitcoin

Unsplash Image

We would like to give thanks to the author of this article for this awesome content

Tether Freezes Three Other Addresses Holding Over $150 Million in USDT – DiarioBitcoin

Dispensary Business News