Tether freezes $150 million in USDT
Tether has added three extra Ethereum addresses, holding extra $150 million value of the USDT stablecoin between them, to its blacklist.
As a centralized firm, Tether is ready to blacklist addresses it believes are concerned in crime, cash laundering — or for every other motive it chooses.
This is the primary time Tether has blacklisted an tackle in 2022 nevertheless it added 312 addresses to the blacklist final yr and has added 563 all up because it first did so on Nov. 28, 2017.
Tether has not revealed why the three new addresses have been blacklisted, nonetheless it has used its energy to blacklist addresses concerned in cyber assaults and legislation enforcement investigations. Following the Kucoin hack in Sep. 2020, Tether froze about $35 million USDT to forestall hackers from capitalizing on their theft.
There may additionally be “precautionary reasons” for the blacklisting, resembling being related to scams, which Arcane Asset’s CIO Eric Wall famous as a motive for a separate Tether freeze in 2020.
Concerns over a scarcity of decentralization could also be an element driving up adoption of the TerraUSD (UST) stablecoin from algo stablecoin blockchain Terra. It is presently the fourth largest stablecoin with a market cap of $10.6 billion. The marketcap of the decentralized challenger nonetheless pales compared to USDT nonetheless, which is the fourth largest crypto general with a market cap of $78.5 billion.
Related: Crypto regulation considerations make decentralized stablecoins enticing to DeFi traders
Do Kwon, founding father of Terra, tweeted in response to the information of Tether’s actions that there was no approach to blacklist UST addresses.