On-chain data shows that Tether froze USDT 46 million on Thursday morning, which is equivalent to about R$250 million. Such an address would be from the stock exchange FTX, which has been struggling with liquidity problems since the beginning of this week.
According to information from CoinDesk, the freeze is related to the execution of a court order. However, it is not possible to know which country would have made such a request, nor what the arguments were.
The address belongs to the Tron network (TRX), but it is worth remembering that USDT is also available on other blockchains. There is currently no information on other freezes.
Tether Freezes FTX Balance After Court Order
Not taking into account withdrawals from its clients since last Tuesday (8), the FTX situation impacted the market as a whole. Bitcoin, for example, has fallen to a two-year low, as have thousands of other smaller cryptocurrencies.
Moving on, even Tether appears to be reeling from the collapse of the world’s third largest stock exchange. According to information from Whale Alert, the company froze about BRL 250 million in USDT on Thursday morning (10).
“An address with a balance of USD 46,360,701 (R$247 million) has just been frozen! The address on the blacklisted/frozen is from FTX.”
ℹ️ The blacklisted/frozen address is from #FTX🇧🇷
— Whale Alert (@whale_alert) Nov 10, 2022
Without disclosing its sources, CoinDesk attributed the freeze to a court order, which could be the first time a brokerage has suffered from this type of action. However, it is worth noting that there are other FTX-focused coins that could suffer the same fate.
The USDT price even briefly lost parity with the dollar, trading at $0.98 this morning, but returned to $1 without much delay.
USDT is surprising Vitalik Buterin
While rumors destroyed FTX in less than a week, USDT lives on after being attacked for so many years for its lack of transparency. This Wednesday (9), even Ethereum maker Vitalik Buterin was surprised by the resilience of the largest stablecoin on the market.
“I have to admit that I have been very critical of Tether in the past, and its transparency is still not what I think an asset-backed currency should have, but especially considering what has happened to so many other big money gangs on the planet. this bear [market]they exceeded my expectations!”
I have to admit, I’ve been very critical of @Tether_to in the past, and their transparency is nowhere near what I think an asset backed coin should have, but especially considering what has happened to so many other big money hotshots on this bear, they have exceeded my expectations!
— vitalik.eth (@VitalikButerin) Nov 9, 2022
His comment came after a meme pointed out that Binance and Tether would be the next giants to fall.
Source: Live Coins
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
