Tether Freezes $8 Million in USDT in Latest Enforcement Action

Tether’s Ongoing Compliance Efforts

Tether, the issuer of the USDT stablecoin, has once again taken action by freezing over $8 million worth of USDT on the Ethereum blockchain. This move was detected on October 10, with transactions monitored by Whale Alert revealing the freezing of three specific USDT addresses.

Details of the Frozen Addresses

The frozen addresses contain 3.4 million USDT, 1.95 million USDT, and 2.9 million USDT, totaling approximately $8.2 million. Following the freeze, these addresses are no longer able to transact or move funds, reducing the total supply of USDT available on the Ethereum network.

Collaboration with Law Enforcement

A spokesperson for Tether emphasized the company’s cooperation with law enforcement agencies, stating that they have worked alongside international authorities to assist in various investigations. To date, Tether has reportedly aided in freezing over $360 million in assets, with approximately $101 million either being reissued or scheduled for reissuance.

Approach to Freezing Addresses

The spokesperson reiterated that Tether complies with legitimate requests from verified law enforcement agents to freeze wallets. However, they clarified that Tether does not freeze addresses associated with exchanges or services, focusing solely on private wallets.

History of Freezes and Compliance

These latest freezes add to Tether’s history of blacklisting Ethereum-based USDT addresses, which includes an incident in January 2022 where Tether froze three addresses containing over $150 million worth of USDT. Since the initiation of these compliance measures in November 2017, Tether has blacklisted a total of 795 addresses on the Ethereum blockchain.

2022 Freezes and Impact on USDT Supply

According to data from Ethereum researcher Philippe Castonguay’s Dune Analytics dashboard, Tether has blacklisted 215 Ethereum addresses in 2022 alone. In comparison, the company blacklisted 357 addresses in 2021. Currently, the total amount of USDT held in banned wallets is worth over $443 million, accounting for approximately 0.64% of the 65 billion USDT in circulation.

Conclusion

The continuous freezes implemented by Tether illustrate the company’s commitment to compliance and its readiness to work with regulatory authorities. As the landscape of cryptocurrency regulation evolves, Tether’s actions reflect the balance between maintaining a secure environment for users and adhering to legal obligations.