Stablecoin issuer Tether froze over $1 million worth of USDT last week, according to on-chain data.
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 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.
© 2021 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.