This summary text is fully AI-generated and may therefore contain errors or be incomplete.
Tether, the issuer of the world’s largest stablecoin, USDT, has taken measures to increase security and prevent misuse of its tokens. The company has frozen Ethereum wallets associated with individuals on the United States Office of Foreign Asset Controls (OFAC) list of sanctioned individuals. This move is part of Tether’s new security policy, which aims to strengthen the ecosystem’s security.
The decision to freeze these wallets is a preemptive security measure taken by Tether to proactively stop any potential token misuse. Etherscan data shows that 161 Ethereum wallets were frozen, with the majority of them not having any USDT tokens at the time. However, among the remaining wallets, there were 3.5 million USDT tokens, with a significant concentration in a single address. This address is of interest due to its association with a recent hacking incident.
Tether’s freezing policy was previously limited to its platform, but the company has now expanded its control over sanctions to the secondary market. This expansion aims to ensure the safe usage of stablecoins and enhance cooperation with government bodies. Tether plans to freeze addresses of Specially Designated Nationals (SDN), both current and prospective.
In a separate high-profile transaction, the Tether Treasury moved $60 million worth of USDT to an unidentified “mysterious fund/institution.” This transaction has garnered attention and highlights Tether’s significant position in the cryptocurrency ecosystem. The company has sent a total of $1.76 billion USDT to this fund/institution since October 20, which was later distributed to different exchangers.
The cryptocurrency community has responded differently to Tether’s proactive security approach. Some see it as a positive step towards wider adoption and better regulation of stablecoins. Tether’s actions align with ongoing efforts to address regulatory concerns and strengthen the acceptance of cryptocurrencies in the financial system.
As of the time of writing, USDT is trading at $0.9999 with a 24-hour decrease of 0.02%. Its volume has increased by 27.97% in the last 24 hours.