The issuer of the USDT stablecoin, Tether, has blacklisted an Ethereum address with over $ 1 million worth of crypto assets, according to data from Etherscan and Dune Analytics.
On December 30, Tether triggered the AddedBlacklist feature for corresponding address. Who owns it and the reasons for its blocking are unknown.
Tether began blocking at the end of 2017. To date, the issuer’s blacklist includes 560 addresses.
The graph below shows that the growth in the number of blocked addresses accelerated in the second half of 2020.
Holders of blacklisted addresses cannot send, receive, or redeem USDT.
According to The block, Tether has a “funds recovery mechanism” – in some cases, the issuer may freeze USDT and then reissue them. For example, if someone sent stablecoins to the wrong address, the company can help recover funds – freeze coins at the wrong address and issue new USDTs to the user.
In the latter case, the funds remain at the frozen address. Tether representatives told the publication that in such situations, suspicious transaction activity is carefully studied, sometimes with the participation of law enforcement officials.
“By freezing addresses, Tether can help recover funds stolen by hackers,” the company explained.
Recall that the hacker of the Chinese Internet protocol Poly Network reimbursed the project for all stolen crypto assets, with the exception of $ 33 million in USDT, which Tether froze after the attack.