Tether Freezes Account Holding Over $1m USDT
Stablecoin, tether has began blocking addresses in 2017 and has done that to over 500 addresses to date on Ethereum.
The stablecoin issuer also has a “recovery” mechanism in place, meaning it can freeze USDT and reissue them in some instances. 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.
After being blacklisted, it becomes impossible for the address to be move the funds. When an address is blacklisted, the USDT balance cannot be moved.
However, it remains a mystery who owns the address. A spokesperson who spoke on the case failed to disclose the identity of the owner of the address.
The spokesperson, however, revealed that the stablecoin issuer regularly works with regulators and law enforcement agencies worldwide, including on any cases related to hacks and scams, for freezing addresses.
However, the address blocked with over $1m has the funds frozen in it. It means that a frozen address is under dispute or being investigated by a law enforcement agency, said the Tether spokesperson