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Tether
strikes
hard
with
4.2
billion
$
of
illicit
tokens
frozen
in
3
years
19h47
▪4min
read
▪
byEddy
S.
Getting
informed▪Regulation
CryptoSummarize
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Tether,
the
issuer
of
the
USDT
stablecoin,
has
blocked
4.2
billion
dollars
of
suspicious
funds
in
three
years.
An
action
that
divides:
some
see
it
as
a
major
step
forward
against
crypto
crime,
while
others
fear
excessive
centralization.
Read
us
on
Google
News
In
brief
Tether
has
frozen
4.2
billion
dollars
of
USDT
tokens
linked
to
illicit
activities
in
3
years.
The
freezing
of
4.2
billion
dollars
by
Tether
raises
debates
on
the
centralization
of
Tether’s
power.
The
massive
freezing
of
funds
by
Tether
could
push
the
crypto
ecosystem
to
seek
more
balanced
alternatives.
4.2
billion
$
of
USDT
tokens
frozen:
Tether,
the
crypto
sheriff?
In
just
three
years,
Tether
has
frozen
4.2
billion
dollars
worth
of
USDT
tokens
linked
toillicit
crypto
activities.
This
colossal
amount
illustrates
the
extent
of
Tether’s
commitment
in
its
fight
against
financial
crime.
Indeed,
thanks
to
an
address
blacklisting
mechanism,
the
company
can
render
USDT
tokens
unusable,
a
capability
that
makes
it
a
privileged
partner
of
regulators
like
the
DOJ.
However,
this
proactive
approach
raises
questions.
How
can
a
private
company
wield
such
power
without
a
clear
legal
framework?
For
observers,
Tether
now
plays
a
hybrid
role,
halfway
between
a
crypto
company
and
a
regulatory
authority.
A
position
that,
while
effective
against
crime,
could
also
weaken
users’
trust
in
an
ecosystem
that
is
supposed
to
be
decentralized.
The
challenges
of
centralization
grow
for
Tether
Themassive
freezing
of
4.2
billion
dollars
of
funds
by
Tetherdivides
the
crypto
community.
On
one
side,
regulation
advocates
applaud
a
necessary
measure
to
clean
up
the
sector
and
avoid
scandals
like
those
of
FTX
or
Terra.
On
the
other,
purists
see
it
as
a
betrayal
of
the
founding
principles
of
cryptocurrencies:
decentralization,
censorship
resistance,
and
financial
freedom.
Your
1st
cryptos
with
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an
affiliate
program.
Critics
point
to
Tether’s
discretionary
power,
capable
of
blocking
funds
without
trial
or
full
transparency.
A
major
risk
for
crypto
users,
who
could
see
their
assets
frozen
by
mistake.
In
comparison,
traditional
banks
offer
legal
recourse
in
disputes,
a
luxury
USDT
holders
do
not
have.
Towards
a
new
era
of
crypto
regulation?
Tether’s
actions
could
well
accelerate
the
adoption
of
new
global
regulations.
In
Europe,
the
MiCA
regulation
already
governs
stablecoins,
while
in
the
United
States,
bills
aim
to
strengthen
the
traceability
of
crypto
transactions.
A
trend
that
could
intensify,
with
increased
compliance
requirements
for
issuers
like
Tether.
Facing
this
regulatory
pressure,
alternatives
are
emerging.
Decentralized
stablecoins,
like
DAI,
promise
censorship
resistance
but
struggle
to
compete
with
USDT’s
massive
adoption.
Meanwhile,
criminals
adapt
their
methods,
using
mixers
or
unregulated
exchanges
to
bypass
freezes.
With
4.2
billion
dollars
frozen,
Tether
makes
crypto
history.
While
this
action
strengthens
the
fight
against
crime,
it
raises
a
key
question:
should
decentralization
be
sacrificed
for
more
security?The
balance
between
innovation
and
regulation
remains
fragilebut
without
rules,
the
era
of
cryptocurrencies
will
come
to
an
end.
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A
A
Lien
copié
Eddy
S.
The
world
is
evolving
and
adaptation
is
the
best
weapon
to
survive
in
this
undulating
universe.
Originally
a
crypto
community
manager,
I
am
interested
in
anything
that
is
directly
or
indirectly
related
to
blockchain
and
its
derivatives.
To
share
my
experience
and
promote
a
field
that
I
am
passionate
about,
nothing
is
better
than
writing
informative
and
relaxed
articles.
DISCLAIMER
The
views,
thoughts,
and
opinions
expressed
in
this
article
belong
solely
to
the
author,
and
should
not
be
taken
as
investment
advice.
Do
your
own
research
before
taking
any
investment
decisions.