Tether freezes $150 million in USDT

Tether has added three more Ethereum addresses, holding over $150 million USDT stablecoin between them, to its blacklist. As a centraliz...



Tether has added three more Ethereum addresses, holding over $150 million USDT stablecoin between them, to its blacklist.

As a centralized company, Tether is able to blacklist addresses that it believes are involved in crime, money laundering, or for any other reason it chooses.

This is the first time Tether has blacklisted an address in 2022, but it added 312 blacklisted addresses last year and added 563 since November 28, 2017.

Tether did not reveal why the three new addresses were blacklisted, but it used its power to blacklist addresses involved in cyberattacks and law enforcement investigations. Following the Kucoin hack in September 2020, Tether frozen about $35 million USDT to prevent hackers from taking advantage of their theft.

There may also be “precautionary reasons” for blacklisting, such as being associated with scams, which the CIO of Arcane Asset Eric Wall noted as the reason for a separate Tether freeze in 2020.

Concerns about the lack of decentralization may be a factor driving the adoption of the TerraUSD (UST) stablecoin from the Terra blockchain stablecoin algo. It is currently the fourth largest stablecoin with a market capitalization of $10.6 billion. However, the market cap of the decentralized challenger still pales in comparison to USDT, which is the fourth largest crypto overall with a market cap of $78.5 billion.

Related: Crypto Regulatory Issues Make Decentralized Stablecoins Attractive to DeFi Investors

Do Kwon, founder of Terra, tweeted in response to news of Tether’s actions that there was no way to blacklist UST addresses.