Tether freezes over $1 million worth of USDT belonging to a single address

Quick Take

  • Tether blacklisted an Ethereum address last week that had over $1 million of USDT balance in it.
  • A Tether spokesperson told The Block that Tether regularly works with regulators for freezing addresses.
advertisement

Stablecoin issuer Tether froze over $1 million worth of USDT last week, according to on-chain data.

The amount is significant, given it belongs to a single blockchain address. Tether called the "AddedBlacklist" function on December 30 to block this address within this transaction.

This address now won't be able to move the frozen funds. When Tether blacklists an address, it freezes the USDT balance of it, as The Block has reported previously.

It is unclear who owns this address, which holds many other tokens in the low five-figure ranges that it hasn't transferred out. When contacted, a Tether spokesperson declined to share those details to maintain the owner's privacy but said Tether regularly works with regulators and law enforcement agencies worldwide, including on any cases related to hacks and scams, for freezing addresses.

"Through the freezing of addresses, Tether has been able to help recover funds stolen by hackers or are compromised," said the spokesperson.

Tether began banning blockchain addresses in 2017 and has blocked over 500 addresses to date on Ethereum, according to The Block's Data Dashboard.

Tether also has a "recovery" mechanism in place, meaning it can freeze USDT and reissue them in certain cases. For example, if a user sends USDT to the wrong address, it can help recover it by freezing the USDT sent to the wrong address and reissuing new USDT to the user.

In the latest blacklisting case, however, the funds remain in the frozen address. Such cases usually mean that a frozen address is under dispute or being investigated by a law enforcement agency, said the Tether spokesperson.


© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Will Sanctions Drive Russia into the Arms of Cryptocurrencies?

From the removal of many Russian banks from SWIFT to a seemingly constant flow of new sanctions, Russia’s invasion of Ukraine has left many to wonder: Is the country likely to lurch towards cryptocurrencies? And if so, what does this mean for businesses that are holding and/or using crypto? Crypto and sanctions evasion Although crypto […]
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC
More