Tether law enforcement request made 160 million dollars heavy addresses of this network frozen. Let’s check this news in more detail.
Tether Law Enforcement
The Stablecoin issuer of Tether (USDT) asset made three addresses of its, frozen, on the Ethereum (ETH) network. The addresses have a $160 million valuation in total. According to the Coindesk website, Tether completely verified the news. It stated that they had actually done such a thing due to a law enforcement request.
The network of Tether has frozen 563 addresses until now, as Bloxy, an analytics website, reports. The network has blocked three of these addresses on the 13th of January. Also, the data on Etherscan.io indicates that a custodial provider of Stablecoin, like USDT and USDC, has blocked about 576 accounts. Such an account holds 818,756.12 of USDT tokens, which has a total balance of $969,810 within over 100 coins.
Whenever the accounts go on the blacklist, the network freezes the balance of USDT in those accounts, and due to that, the users can’t transfer any funds from them. Now the Tether law enforcement is making such a situation.
Since a year ago, Tether said that they “work tirelessly to assist law enforcement to stop criminals and interdict contraband,” in an interview with South China Morning Post. It also mentioned: “will share customer information with law enforcement when given valid legal process,” and then added: “In fact, we have helped law enforcement and victims to freeze and return millions in USDT.”
This is a long time after the first time this network had frozen any funds, some of which were even worth millions. Some of them also came back to their owners. Anyways, it has raised concerns about centralization both of the times.
Attorney to Comment about the Blacklist
According to what attorney Collins Belton commented on this blacklisting recently: “This represents a pretty significant evolution of centralized stablecoin blacklist activity.” It also added: “Given size, I assume this can only be a few whales, an exchange/its affiliate, or smaller state actor.”
The attorney recommended that these have the possibility to be people or groups involved in criminal activities.
Chainalysis, a blockchain analysis firm, recognized that the scams keep generating the most significant flow of crime based on cryptocurrencies just by the volume of transaction. Through the scams, over $7.7bn cryptos worth has gone from victims globally by Dec. 2021.
The firm also stated this month that the increase in legal crypto uses is more than the illegal ones.