Tether Blocks Address with More Than $1M in USDT

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The issuer of the stablecoin USDT, Tether, has added to its blacklist an Ethereum address with over $1 million worth of crypto assets, according to data from Etherscan and Dune Analytics.

On December 30, Tether activated the “AddedBlacklist” function for the corresponding address. However, it remains unknown who is the owner of the address and why it has been blocked.

Tether started blocking addresses at the end of 2017. To date, the issuer’s blacklist includes around 560 addresses. We should take into account that the growth in the number of blocked addresses accelerated in the second half of 2020.

When an address is blacklisted, its owners cannot send, receive or redeem USDT.

Tether has a “fund recovery mechanism” – in some cases, the issuer can freeze USDT and then reissue them. This means that if someone sends stablecoins to the wrong address, the company can help recover the funds.