Tether Freezes $160M of USDT on Ethereum Blockchain

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Key Takeaways:

  • Tether Ltd. has froze three addresses that have a worth of $160M USDT. 
  • Tether works with regulators and law enforcement to keep an eye on suspicious activities. 
  • A blacklisted account freezes along with its funds, which thus cannot be moved. 
  • Tether has a recovery mechanism to help recover funds from “unsupported destination.”
Tether Freezes $160M Of Usdt On Ethereum Blockchain
Tether Freezes $160M of USDT on Ethereum Blockchain

According to data from Etherscan, a recent email by a Tether spokesperson has stated that the stablecoin issuer has “frozen three addresses on the Ethereum blockchain” worth $160M USDT. This action has been taken to execute a law enforcement request and Tether refuses to share more details regarding the issue. 

According to previous statements, Tether regularly supervises suspicious accounts with the help of regulators. This started when the issuer faced a breach and lost $30 million of USDT  on November 17.

Since then, it has blacklisted 563 addresses on the Ethereum blockchain. Last December, Tether blocked a single address worth $1 million USDT and called the “AddedBlacklist” function to do the same. 

Tether said, that accounts that are blacklisted won’t be able to transfer their frozen funds. Considering these amounts as “significant”, Tether created a “recovery mechanism” that helps in reissuing USDts in certain cases by freezing them.

The issuer has clearly stated that they will only help recover from destinations that Tether “determines to be recoverable.”

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Shreya Bhattacharya
Shreya Bhattacharya

A journalist & writer exploring new topics every day!

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