USDT issuer company freezes $150M+ USDT, what about decentralization?
Tether freezed more than $150 million worth of Stablecoins, on the order of US Enforcement agencies.
Tether is an arm of Bitfinex company and the entry of USDT took place in this crypto industry after the mid of 2014. After the entry of USDT into the crypto industry, the majority of the crypto traders started to use it rapidly just like dollars. Tether’s USDT gives a guarantee to reserve $1 equal to every 1 USDT.
Tether officially announced that the company freezed more than $150 million worth of Stablecoins last week. All these stable coins were held at three addresses in the Ethereum network (ERC-20).
The company explained that the main reason behind this move was to follow the orders that they got from law enforcement departments.
Since November 2021, Tether blocked and freezed more than 560 addresses, on the order of law enforcement agencies. And the latest move of the tether company was the first action of this year to freeze funds.
USDT Decentralized?
Such accessibility of the USDT control by the Tether company showed that Tether is no more decentralized or we can say USDT can’t be considered as a decentralized tether network. At least the company can freeze and block the transactions of particular numbers of USDT on particular addresses, not enough to follow the real whitepaper created by Satoshi Nakamoto for Bitcoin.
However, the Tether company never admitted that Tether is not decentralized. Instead, they explain this thing to people in a different way to convince people that it is all about the safety tools for the users.
Earlier an executive of Tether company stated that ” through the freezing of addresses, Tether has been able to help recover funds stolen by hackers or are compromised,”
Right now a huge number of stable coins are running in this crypto industry these are USDT, BUSD, USDC, USDP, TUSD, UST, DGX, USD, GUSD. In all this, USDT is at top ranking with a Total Market Cap of $68.14 billion.
Read also: Australia will improve water supply network with blockchain technology
