Monday, January 17, 2022

Tether freezes $150 million in USDT

Tether has added three extra Ethereum addresses, holding greater than $150 million price of the Tether (USDT) stablecoin amongst 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 deal with in 2022, nevertheless it added 312 addresses to its blacklist final 12 months and has added 563 because it first did so on Nov. 28, 2017.

Tether has not revealed why the three new addresses have been blacklisted. However, it has used its energy to blacklist addresses concerned in cyberattacks and regulation enforcement investigations. Following the KuCoin hack in September 2020, Tether froze about $35 million in USDT to stop hackers from capitalizing on their theft.

There may be “precautionary causes” for the blacklisting, corresponding to being related to scams, which Arcane Asset chief funding officer Eric Wall noted as a reason for a separate Tether freeze in 2020.

Concerns over a scarcity of decentralization could also be an element driving up adoption of Terra’s algorithmic stablecoin, TerraUSD (UST). It is at the moment the fourth-largest stablecoin with a market capitalization of $10.6 billion. The market cap of the decentralized challenger nonetheless pales in comparability to USDT, nonetheless, which is the fourth-largest crypto general with a market cap of $78.5 billion.

Related: Crypto regulation concerns make decentralized stablecoins attractive to DeFi investors

Do Kwon, founding father of Terra, tweeted in response to the information of Tether’s actions that there was no option to blacklist UST addresses.