Tether Ltd Freezes 8.2 Million in USDT on Ethereum (ETH) Blockchain

Tether freezes winter crypto magic run-away
  • The stablecoin issuing company Tether (USDT) is apparently collaborating with regulators globally.
  • So far in 2022, Tether has frozen the funds of 215 USDT addresses on Ethereum, investigations have revealed.
  • Tether Ltd. has not posted any comments on these moves related to suspicious activity from the addresses involved.

Tether Limited, the issuing company of the Tether stablecoin, froze a new batch of USDT on the Ethereum blockchain, totaling more than $8 million in frozen cryptocurrencies.

According to Whale Alert, the monitoring and alert service for large crypto movements, on October 10, several transactions were recorded that show that the Tether-issuing company froze three USDT addresses.

One of the frozen addresses contains 3.4 million USDT, the other 1.95 million USDT, and the third 2.9 million USDT, according to transaction log data published on Etherscan. It means that these addresses or wallets will no longer be able to mobilize funds for a total value of 8.25 million USDT.

No Comment

Tether will be collaborating with government agencies around the world to further investigations and try to clarify this case, Cointelegraph quoted a company spokesperson as saying.

Until now, the issuing company of the world’s largest stablecoin has not published any explanation about these new fund freezes. The company alleges that it is limited to doing so by the legal regulations that govern this type of case.

This is not the first time that Tether has blacklisted Ethereum-based USDT addresses. Earlier in the year, three more Ethereum blockchain addresses with more than $150 million worth of the stablecoin were listed.

Since late 2017, when it began blacklisting USDT addresses, the issuing company has listed a total of 795 USDT addresses on Ethereum, as part of its commitment to cooperate with regulators.

On the Flipside

  • This year, a total of 215 Ethereum-based USDT addresses have been blacklisted by Tether Ltd., according to blockchain researcher Philippe Castonguay, based on data compiled from Dune Analytics.
  • Last year, Tether also blacklisted another 357 Ethereum-based USDT addresses as well.

Why You Should Care

  • The Tether stablecoin was first launched 8 years ago on the Omni Layer, the Bitcoin blockchain-based platform. It was later extended to other blockchains.
  • Currently, its market capitalization is over 68 billion dollars, placing it in a dominant position with respect to other stablecoins.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Santiago Contreras

Santiago is a Venezuelan blockchain reporter specializing in economic and financial issues, with special emphasis on stablecoin trading as well as political and regulatory issues related to Latin America. Every day he reviews and analyzes movements in the crypto market to offer readers first-hand information that can help them make sound decisions in the exciting world of crypto.