Tether Blacklists 3 Addresses Holding Over $150 Million: What It Means
In January 2025, Tether blacklisted three Ethereum wallets holding over $150 million in USDT, raising eyebrows across the cryptocurrency community. Tether has added three Ethereum addresses to its blacklist that hold $150 million worth of USDT stablecoin. This action, effectively freezing those funds, has once again ignited debate about the centralization of stablecoins.
Tether Freezes $150 Million in USDT: Latest Update
The latest one stems from Tether freezing three Ethereum-based USDT addresses reportedly holding over $150 million in the stablecoin. Tether recently froze over $150 million of USDT. According to Tether officials, these actions are taken to comply with regulatory requests and combat illicit activities.
Why Did Tether Blacklist These Addresses?
Being a centralized blockchain, Tether can blacklist the addresses to control USDT flow. This power, while aimed at preventing money laundering and other illegal activities, has raised concerns about the potential for arbitrary asset seizure. This is not the first time that the company has frozen USDT, actions that has once again stoked concerns of centralization. By October of that same year, it froze $8.2 million and later added 215 more addresses to its list.
What This Means for USDT Holders
The blacklisting event highlights the inherent risks associated with centralized stablecoins like USDT. While offering stability in the volatile crypto market, their centralized control raises questions about censorship resistance and the potential for funds to be frozen. It's a reminder for users to consider the trade-offs between stability and decentralization when choosing their digital assets.