Stablecoin Issuer Tether Blacklists Six Wallets
Tether, the stablecoin issuer, has added six wallets to its blacklist, consisting of five on the Ethereum network and one on Tron. This demonstrates Tether’s proactive approach to blocking addresses.
Questionable Transactions Linked to Ethereum Addresses
ChainArgos, a blockchain intelligence firm, has identified some suspicious transactions associated with the Ethereum addresses. These transactions may be connected to the Finiko pyramid scheme that allegedly defrauded Russian investors of $95 million.
No Other Unusual Activity
Aside from these questionable transactions, there doesn’t appear to be anything else out of the ordinary.
Limited Activity in the Tron Address
The Tron address has minimal activity, with only one incoming transfer of approximately $7,000 in USDT from Bitfinex, according to ChainArgos.
Tether’s History of Blacklisting Addresses
This is not the first time Tether has blacklisted addresses associated with illicit activities. After a security breach in 2017, where $30 million worth of USDT was stolen, Tether began freezing funds and has since blacklisted over 960 Ethereum addresses.
Ties to Unlawful Activities in Israel and Ukraine
In October, Tether announced that it had frozen 32 accounts holding around $874 million due to their connection with unlawful activities in Israel and Ukraine. The stablecoin issuer has actively collaborated with organizations like the National Bureau for Counter-Terror Financing of Israel (NBCTF) to combat the use of crypto in terrorism and warfare funding. Tether has also claimed to assist law enforcement agencies in Ukrainian cases.
Criticism for Blacklisting MEV Address
In April, Tether faced backlash for blacklisting an address that drained MEV bots of $25 million. Critics argued that this action set a negative precedent for decentralization in the crypto space.
Hot Take: Tether’s Proactive Measures Against Illicit Activities
Tether’s recent blacklisting of six wallets demonstrates its commitment to combating illicit activities and ensuring the integrity of its stablecoin. By actively blocking addresses associated with suspicious transactions and collaborating with law enforcement agencies and counter-terrorism organizations, Tether aims to maintain trust and security in the crypto industry. While some critics argue against the blacklisting approach, Tether continues to prioritize the protection of its users and the wider crypto community.
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