Tether froze three ETH addresses holding $150 million in USDT while previously it blacklisted 312 addresses at the end of 2021 so let’s read more in today’s Tether news.
World’s biggest stablecoin issuer Tether added three more ETH addresses to the blacklist that held about $150 million worth of USDT. Being a centralized company, Tether has the authority to freeze the accounts with dubious funds related to crime and to money laundering. The three accounts that were frozen by Tether can’t move the funds or conduct transfers so given the increasing crypto crime, Tether earlier issued statements that the company is vigilant towards supervising the crypto movement and regulating the funds which could be associated with money laundering and crime.
Tether stated that it helps international law enforcement to track the dubious funds to help them freeze these accounts. According to the data from Bloxy Block Explorer, TEther froze 563 addresses with dubious funds in November after freezing 312 addresses back in December 2021. Tether started blocking blockchain addresses in 2017 when the theft comprising $30 million USDT was reported by a company and Tether’s unique recovery mechanism allows it to freeze the coins and later reissue them in a few cases. According to the report, crime in the crypto sector increased dramatically since 2020.
More than $14 million worth of funds were held by illicit addresses in 2021 posing a rise in malicious activities conducted through crypto. Tether has to disclose reasons why the three addresses were blacklisted and the rising speculation suggests the move could prove to be a precaution and prevent rising scams and fraudulent activities about USDT. Tether also blocked the address holding $1 million worth of USDT and the company spokesperson referred to the move as a way to help recover the funds stolen by hackers or are compromised.
USDT is a second layer crypto token that is built on top of the BTC blockchain thorugh the use of the Omni platform and was issued by Tether as the world’s biggest stablecoin issuer with a market cap of $78.3 billion.
As recently reported, The leading stablecoin issuer Tether accused in a new class-action lawsuit alleging that the practices of the company were immoral, oppressive, and unethical according to the complaint that was filed to the district court of south NEw York. Plaintiffs Shawn Dolika and Matthew Anderson dispute Tether’s claim that the crypto is backed by 1:1 dollar reserves. This claim has so far been challenged twice in court and the current case references the company’s checkered legal history.