Over $150 million in USDT was recently frozen by Tether. This isn’t the first time the corporation has blocked USDT, raising fears about centralization in the crypto industry once again.
Tether froze about $150 million worth of USDT on Jan. 13, according to blockchain statistics. This isn’t the first time Tether has blocked cash in this way, and it’s a source of debate among cryptocurrency enthusiasts. Three addresses were added to the blacklist
There has been no explanation given for why these monies have been stopped. Tether can freeze, destroy, or issue tokens at will, as well as blacklist addresses, thanks to smart contract coding.
Tether has done this in the past, prompting a large and vocal segment of the crypto community to advocate for the deployment of decentralised stablecoins such as DAI. The centralised stablecoins USDT and USDC make up a large portion of the stablecoin market. However, some have pointed out that USDC backs a significant portion of DAI, which has its own set of dangers.
Tether’s most contentious feature, though, is the backing of its supply. With over 76 billion USDT in circulation, investors are concerned about what would happen if the currency’s reserves couldn’t account for it all. Tether issued 1 billion USDT on the TRON blockchain in December 2021.
Tether has stated that its circulation is accounted for by a variety of assets, but investors and analysts have demanded a reliable audit. The network’s operations attracted the attention of the US Commodity Futures Trading Commission, which found no fault with it but imposed a $41 million punishment.