- There has not been a statement issued yet by Tether regarding the three addresses that day blacklisted and the reasons.
- Since it is a centralized company, Tether has the power to Blacklist the fraudulent addresses because it was suspected that all these addresses were involved in money laundering.
- The reason why Tether has been able to Blacklist these addresses have not been listed, but it has used its power for law enforcement.
There has not been a statement issued yet by Tether regarding the three addresses that day blacklisted and the reasons, but it can be said that it was done to comply with the aid exchanges and law enforcement. This step was taken care of after the vehement cyber-attacks in 2021. It has added three ethereum addresses, and the total holds more than 150 million worth of usdt stable coin- not to forget that Tether has blacklisted them completely.
Tether finds suspicions
Since it is a centralized company, Tether has the power to Blacklist the fraudulent addresses because it was suspected that all these addresses were involved in money laundering and other cryptocurrency crimes. This is the first time Tether has used its power to Blacklist the address in 2022, but it is not the only one. In the last year itself, it added 312 addresses to the Blacklist and 563 on November 28, 2017.
The reason why Tether has been able to Blacklist these addresses have not been listed, but it has used its power for law enforcement and cyber-attack investigations. In September 2020, Kucoin used a special hack, and Tether froze 35 million dollars worth of USDT. It is used to prevent criminals from capitalizing on the theft with the help of hacking techniques. According to the company, many precautionary reasons are not coming up for the blacklisting, and they may be associated with scams.
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Lack of decentralization can also be a factor for bringing up the adoption process of TerraUSD. It is a stable coin from the blockchain Terra, and most importantly, it is the fourth largest one. One should not forget that it has a market cap of 10.6 billion dollars. This is a decentralized Challenger, which is quite weak compared to USDT, but the overall data says that it is still the fourth-largest cryptocurrency with a market cap of 78.5 billion dollars.
Because of the strict regulations, DEFI investors are becoming attracted to stablecoins. MIM, UST, and FRAX are stablecoins that are attractive to investors because of the centralizing process around usdt and usdc. These stablecoins have come up as the foundation of the entire ecosystem of cryptocurrency in the last few years. Because of the ability to provide crypto traders with volatility and widespread integration, the investors are finding a positive impact out of these changes. Most crypto experts say that these steps are necessary for the well-being of the entire ecosystem.
Currently, USDC and USDT are quite dominant in the stable coin market, but the stringent regulations are causing most people in the crypto community to look out for decentralized options. Binance has secured the 3rd rank among stablecoins and is controlled by the Binance cryptocurrency exchange itself. There are a lot of questions about decentralization, and about 38 % of the total supply has the backing of USDC. Most investors are now going towards decentralized stablecoins because of enhanced market capitalization and interesting decentralized finance platforms.
The decentralization of cryptocurrency makes sure that there are no more fraudulent activities. Even though there is no definite reason why Tether has been freezing the USDT addresses, most of the crypto experts say that it will bring forward the best law enforcement techniques. Therefore, 2022 will have a rare chance of scam, and there will be fewer cyber attacks. Therefore, these precautionary regions are best covered, and the new investors do not have problems depositing their funds.
