Tether [USDT] has blacklisted around 39 ETH addresses worth $46 Mln in USDT, with 24 holding a sum of over 5.5 Mln USDT being blacklisted this year. This revelation comes on the back of Centre’s first blacklisting of an Ethereum [ETH] address holding over $100k USDC.
Ethereum researcher at Horizon Games Philippe Castonguay used Dune Analytics to make a dashboard that tracks the amount of addresses blacklisted by both Centre and Tether. The largest address holds over 4.5 Mln USDT and was only recently blacklisted on 5th April.
Similar to blacklisted addresses holding USDC, Tether addresses that receive a blacklisting function are no longer ready to transact with Tether, freezing any existing coins held within the address.
General counsel at Bitfinex [parent company of Tether] Stuart Hoegner told the media that Tether works with global enforcement agencies and blacklists addresses when required:
“Tether routinely assists regulators in their investigations… Through the freeze address feature, Tether has been able to assist several users and exchanges to save and recover tens of million dollars stolen from them by hackers.”
Freezes Were Purely Precautionary
Arcane Assets CIO Eric Wall stated on Twitter that the foremost recent freeze occured on 14th June that held 939k USDT received from Binance just 22 hours prior the blacklisting occurred.
Aside from this, Wall added, most other freezes were purely precautionary actions:
“Most other freezes seem to have been made on behalf of Ethereum accounts either for precautionary reasons – possibly identified as scams/Ponzis or in error/to protect others from making errors – like freezing 0x000…0001. 3 addresses were unfrozen after the freeze.”
This recent development additionally adds to the distrust of central organizations within the cryptocurrency world, with resistance specifically over stablecoins and their ability to be censored. One user commented on Castonguay’s Twitter post that Dai [DAI] and sUSD are the sole censorship-resistant stablecoins.