Tether Blacklists Ethereum Addresses of Worth $46 Million

Vandana  |  Jul 10, 2020

Centre, the USDC issuer has recently blacklisted an Ethereum address which was holding $100,000 after request from law enforcement. Right after this, Tether has blacklisted different Ethereum addresses which were worth around $46 million. It has been revealed that 24 addresses from these blacklisted ones were holding around 5.5 million Tether (USDT).

Turns out 39 addresses have been banned from using USDT on Ethereum as of now. Made another dashboard to keep track of USDT bans here:https://t.co/uuQd1kW28Y https://t.co/sUAw5hnWur pic.twitter.com/72G7OKNlfI

Dune Analytics have been used by the Ethereum researcher to create a dashboard. This dashboard has been used to track the total addresses which have been blacklisted. This year, the largest Ethereum address which has been blacklisted was holding around 4.5 million USDT.

Blacklisted USDT addresses are not able to transact with Tether

All the USDT addresses which have been blacklisted are now not able to transact with Tether. Along with this, all the coins which are already there in those addresses have been frozen by the firm. Stuart Hoegner, General Counsel at Bitfinex has said that Tether works along with many law enforcement agencies and keeps an eye on all the addresses. This is the reason why it blacklists all those addresses which it finds inappropriate. It provides a freeze address feature which helps the users to recover the funds which have been stolen by the hackers.

Most of the freezes took place due to precautionary measures 

Eric Wall, the CIO of Arcane Assets has said that Tether has frozen an account on June 14 right before the blacklisting took place. He also said that most of the freezes took place only as a precautionary measure because there might be some doubt of some scams. It has been seen that after this recent freezing and blacklisting of accounts, there will be a huge mistrust of people over stablecoins. People now seem to get afraid of the censorship which is associated with the stablecoins. Few believe that DAI and USD are the safest stablecoin with censorship resistance.

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