Tether freezes account containing $1M worth of USDT

Tether freezes account containing $1M worth of USDT

Stablecoin issuer Tether blocked an Ethereum address holding USDT worth $1 million last week, as per data by Etherscan.

According to reports, Tether froze the account on December 30, 2021, and added the address to its blacklist. In addition to USDT, the blacklisted address also holds various tokens, including Chainlink (LINK), Fantom (FTM), Decentraland (MANA), The Sandbox (SAND), and Uniswap (UNI).

While Tether did not reveal the owner or any reason behind the freeze, a spokesperson from Tether told crypto media The Block that it constantly works with law enforcement agencies to freeze the activities of addresses suspected of being involved in crime.

Tether has blacklisted over 560 addresses to date. It has a recovery mechanism where Tether can freeze the address and reissue the same amount of tokens held in that account. However, USDTs in the frozen address have not been removed, suggesting that it is currently under dispute.

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