Tether Moves to Seize $3.5M USDT as It Freezes 161 Wallets

Tether wallet-freezing policy has expanded its reach to more Ethereum-based wallets, with only 11 containing USDT balances.

Man in an ice cave seeing frozen USDT.
Created by Kornelija Poderskytė from DailyCoin
  • Stablecoin issuer Tether unveiled a new policy to combat cybercrime amid intensifying industry regulations.
  • The firm has begun freezing users’ wallets in line with OFAC regulations.
  • Tether Advisor disputes market analysis regarding the USDT market position.

As global financial authorities intensify industry oversight, cryptocurrency entities make policy shifts to ensure compliance. On December 9, 2023, USDT-stablecoin issuer Tether unveiled a new wallet-freezing policy, targeting sanctioned individuals in line with the US Office of Foreign Asset Controls (OFAC) requirements. 

Against this backdrop, the stablecoin issuer has restricted access to more sanctioned wallets.

Tether Continues Freezing Wallets

Tether’s wallet-freezing initiative has progressed with momentum, freezing an additional 161 Ethereum-based wallets on December 11.

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The move came less than 24 hours after its initial decision to lock 41 crypto wallets, which included those linked with the coin mixer Tornado Cash and the 2022 Ronin Bridge Attack.

Approximately 150 of the frozen wallets did not hold any USDT, as only 11 had cryptocurrency balances exceeding 3.5 million USDT tokens, of which a substantial 3.4 million was concentrated in a single address.

Amid the recent Tether developments, investment solution firm VanEck has predicted a potential ousting of the firm’s USDT by its Circle-owned market rival, UDSC. In response, Tether advisor Gabor Gurbacs has expressed his disagreement. 

Gurbacs reiterated that USDT’s focus on retail service provision grants it an advantage over UDSC’s institutional bet, guaranteeing its longevity within the expanding industry.

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He added that the unclear regulatory standards surrounding U.S-based crypto firms like Circle will not impact Tether, further ensuring an enduring presence within the industry.

Read more on regulations and standards of the crypto industry in the United States:
Senator Warren Labels Crypto a Threat to the United States 

USDT extends its stablecoin market dominance as its market cap reaches a new all-time high. Read more:
Tether USDT’s Market Cap Skyrockets to Near $90B ATH

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
Grace Abidemi

Grace Abidemi, a cryptocurrency reporter at DailyCoin, covers industry developments and trends. She previously worked as a freelance writer. With a Bachelor's degree in German Language and certifications in marketing and storytelling, Grace creates engaging content. When not working, she's in Nigeria, mastering cooking and canvas painting, and enjoys learning about different cultures and languages.