Report: Tether freezes $46M of FTX’s USDT, setting new precedent

In line with blockchain transaction information provided by WhaleAlert on Nov. 10, Tether seems to have frozen 46,360,701 USDT (USDT) ($46,274,472) owned by troubled cryptocurrency trade FTX in its Tron blockchain pockets. The transfer comes someday after america Securities and Change Fee and the U.S. Justice Division started investigating FTX over its liquidity disaster. 

A spokesperson from Tether said on Oct. 11 that the agency solely freezes privately held wallets when it receives a authentic request from a verified legislation enforcement agent to take action and that “we don’t freeze wallets of exchanges or companies.” If confirmed, the freeze imposed in opposition to FTX’s pockets could be the primary of its variety. The identical day, Japanese authorities ordered FTX to halt operations within the nation after the trade halted withdrawals.

Related articles

Binance upgrades Proof of Reserves verification to include zk-SNARKs

2023-03-15

The history of mining: From the stone age to the digital era

2023-02-10

Replace (Nov. 10, 3:45 pm UTC): A Tether spokesperson to whom Cointelegraph reached out said: “Whereas we can not particularly remark, Tether routinely has an open dialogue with legislation enforcement businesses, together with the U.S. Division of Justice, as a part of our dedication to cooperation, transparency and accountability.”

“Amid rumors of insolvency at crypto trade FTX and worries in regards to the monetary situations of Alameda Analysis, we wish to initially, act as a mouthpiece for your entire crypto ecosystem and reiterate that one disaster doesn’t make an trade.”

In response to a number of unconfirmed rumors that Tether held USDT publicity to the ailing trade, the spokesperson reiterated that Tether has no credit score towards FTX nor its affiliate buying and selling agency, Alameda Analysis. “Tether tokens are 100% backed by our reserves, and the property which can be backing the reserves exceed the liabilities. Tether holds a robust, conservative and liquid portfolio, which incorporates money, money equivalents and U.S. treasuries,” the supply mentioned, including: “Tether will proceed to concentrate on safeguarding these reserves.”

It is a growing story, and additional info will likely be added because it turns into accessible.