Tether, the company responsible for the largest stablecoin, USDT, revealed its decision to ‘freeze’ its tokens in wallets associated with individuals sanctioned by the United States’ Office of Foreign Asset Controls (OFAC).
Tether presented this action as a proactive measure to prevent potential misuse of their tokens and to enhance overall security.
According to blockchain data from Etherscan, Tether did carry out the freezing of 161 Ethereum wallets. However, 150 of these wallets currently do not contain any USDT tokens.
The details are unclear regarding whether these wallets ever held USDT tokens in the past or how many were involved in such transactions.
The 11 remaining wallets contain more than 3.5 million USDT tokens, with the majority (3.4 million) held in a single address. Blockchain investigator ZachXBT has connected this address to the recent security breach at the Stake betting platform.
Among the other wallets holding USDT, two have approximately 20,000 tokens each, while a third has nearly 60,000. The rest have smaller amounts, for instance, one wallet has only 16 cents in frozen USDT.
Two days before the freeze, this wallet was involved in moving over 400,000 USDT received from THORChain through two other wallets, making it challenging to trace the funds. Notably, neither of the two wallets used for transferring the USDT seems to have been affected by Tether’s freeze.
Also Read: Tether Treasury’s Transfer Under Scrutiny
