Tether can freeze stable coins in your wallets

[Outhue]

I have been in this crypto space for too long now to know that this is how USDT and few others stablecoins roles, the reason why USDT is the most monitored like how it's getting to you now OP is because it's the most popular one out there, everyone is making AA big deal out of how they are minting many more coins, it's what they do, just like how USD are been printed every time to time, I don't care much about this, they work just like USD and that's why I use their services.

As for the freezing thing, get used to it because Tether is a centralised stablecoin company, they have the power to freeze your coins and if anyone don't like this they should find a decentralised stablecoin like DAI, others like USDC and USDT and those new stablecoins are all centralised, and anything that's centralised has the authority to push the freezing button on you.

[EarnOnVictor]

Perhaps, you don't know how this things world, and it's not only Tether, as many of them can't be trusted; they are more centralised than you think. If a stablecoin coin is being backed by US Treasury Bills, Physical Gold, etc, such must be well-monitored and regulated, and by virtue, their decentralision can't be possible for the government to even allow the way it functions.

As for this new $1B mints in question, it's not about sending it into the market itself, but a plan where it is not issued, but yet authorised. Let's call it a backup funds to meet some specific liquidity obligations.

[MadSl1m]

nobody in 42 replies has mentioned the spend side of this. the freeze risk isn't only about holding usdt in a wallet, it also lives in whichever card you use to spend it. custodial cards keep your balance on their own books, so if tether or the card issuer freezes it, you lose access at checkout too. self-custody cards (gnosis pay, ether.fi, metamask card) pull straight from your own address instead, 45 of the 133 i track work this way. one caveat: self-custody only removes the card company's ability to freeze you, it doesn't stop tether blacklisting the specific address your usdt sits in, that risk only goes away on a decentralized-collateral stablecoin like dai.

[KiaKia]

What's funny and ironic is that while everybody is questioning and even doubting Tether's reserves, some even for years, many are also probably cheering for Tether whenever they mint more USDT because many of these tokens will probably be used to purchase Bitcoin and other altcoins. Tether minting a billion more USDT could be interpreted as a billion more money to buy Bitcoin and altcoins, therefore an increase in their prices.

And since Tether made the announcement that they would regularly buy Bitcoin with their profit, Tether has become a constant source of demand. Tether is now a reliable player pushing Bitcoin's price up.

You said my mind, in the past people get excited once new USDT is been minted, everyone is already looking forward for some massive Bitcoin purchase, sadly it's no longer the case today.

In fact some people are even hoping for the collapse of USDT, it is always USDT alone and I don't know why, sometimes I feel they just don't like the company for their own reasons.

I don't care, it's not over until it's over is my own case, I use USDT as my way of storing Fiat until I am ready to deploy into Bitcoin and other crypto assets, it worked well for me so far, if freezing is the reason why anyone is scared of USDT they should stay away from crime.

[ImGenius]

Another event as a strong warning to newbies or any people who think that stable coins are safe for their money storage in long term. Even in short term, it's already not safe, funds can be frozen anytime, so there is nothing as long term or short term.

Another risk is depeg.

It's not about terror-related or not, but stable coin companies can freeze stable coins in wallets anytime.

I don't understand why a terrorist group would hold USDT in a Tron wallet. I mean they could use the other network like Bitcoin ETH, etc instead of tron network. Maybe those accounts are being frozen for some other reason and tether redirect them by making it as terror group Wallets. Now a days Tether becoming untrustable for me who knows if they will froze my wallet when i hold them.

[knowngunman]

Another event as a strong warning to newbies or any people who think that stable coins are safe for their money storage in long term. Even in short term, it's already not safe, funds can be frozen anytime, so there is nothing as long term or short term.

Another risk is depeg.

Tether freezes over 130 Tron wallets tied to Terror Group ISIS-K.

It's not about terror-related or not, but stable coin companies can freeze stable coins in wallets anytime.

Well, but this is not suppose to be a breaking news for us. USDT is centralised, they can blacklist and freeze assets because it's written in their terms of service.

We shouldn't be surprised when things like this happen. Moreover, they complies with law enforcement in carrying out their activities. They don't just wake up and freeze random wallet, unless in a case of hacking or scam or by court order.

I don't understand why a terrorist group would hold USDT in a Tron wallet. I mean they could use the other network like Bitcoin ETH, etc instead of tron network. Maybe those accounts are being frozen for some other reason and tether redirect them by making it as terror group Wallets. Now a days Tether becoming untrustable for me who knows if they will froze my wallet when i hold them.

Hope you realise you're literally telling terrorists how to evade sanctions.

You have nothing to worry about freezing your assets unless you're dealing with suspicious funds.

[MusaPk]

You said my mind, in the past people get excited once new USDT is been minted, everyone is already looking forward for some massive Bitcoin purchase, sadly it's no longer the case today.

In fact some people are even hoping for the collapse of USDT, it is always USDT alone and I don't know why, sometimes I feel they just don't like the company for their own reasons.

I don't care, it's not over until it's over is my own case, I use USDT as my way of storing Fiat until I am ready to deploy into Bitcoin and other crypto assets, it worked well for me so far, if freezing is the reason why anyone is scared of USDT they should stay away from crime.

If someone is going for stable coin like USDT then he must be aware of the fact that the company behind USDT can freeze your coins against any violation of their terms of usage. Stable coins like USDT are not decentralised coins but centralised one that are owned by a company. I use USDT whenever I want to convert my Bitcoins to fiat and so far this strategy has worked fine for me. I am fully aware that nobody can freeze my Bitcoins but once I convert that to USDT then I become cautious. I am not a big fan of stable coins but use them for specific purpose only.

[sunsilk]

nobody in 42 replies has mentioned the spend side of this. the freeze risk isn't only about holding usdt in a wallet, it also lives in whichever card you use to spend it. custodial cards keep your balance on their own books, so if tether or the card issuer freezes it, you lose access at checkout too. self-custody cards (gnosis pay, ether.fi, metamask card) pull straight from your own address instead, 45 of the 133 i track work this way. one caveat: self-custody only removes the card company's ability to freeze you, it doesn't stop tether blacklisting the specific address your usdt sits in, that risk only goes away on a decentralized-collateral stablecoin like dai.

That's right and a real concern. If someone uses crypto cards where they have these USDT, then it's for sure if it's connected to it then it won't be usable anymore.

While this is not concerning for me because I don't own any of these cards but I'm planning to have it and the main option is to use a stable coin there and USDT will be a part of it.

I'm glad that I've read what you've said but there's nothing to be wary of if we're not doing anything bad at all.

[PX-Z]

...
It's not about terror-related or not, but stable coin companies can freeze stable coins in wallets anytime.

This is a bold statement. It's only about wallets linked to sanctions evasion, hacks, illegal networks, etc. especially requested by authorities. Ifyou're saying they can freeze your funds anytime, then no one will use them anymore. Again, it's only those with illegal networks, it's proven, no one reported wallets that was frozen without doing such activities.

[Somegory]

Don't get involved in any hack or criminal activities, people blame Tether for introducing account freezing but this is just one way of dealing with criminal rings and operations, if you are not in support of this you are probably a criminal minded person.

I've never read about someone getting is USDT address freezed without doing anything illegal, I've asked and look for such victim, if such day never comes I will never blame Tether for having this freezing feature.

I don't like centralised companies that much but fight against crime is something that must be done, there are too many victims of crime in crypto space.

[Karl_3000]

I've never read about someone getting is USDT address freezed without doing anything illegal, I've asked and look for such victim, if such day never comes I will never blame Tether for having this freezing feature.

You can think it is just an advantage but it get to the point that small scale scam that are not hitting the news maybe neglected by Tether. If someone scam another person of $1000 and the victim reach out to Tether, Tether will not do anything and that is how a centralized company not able to help. Only large scale ones are the ones that Tether is freezing and probably also reissue.

[Hazink]

Don't get involved in any hack or criminal activities, people blame Tether for introducing account freezing but this is just one way of dealing with criminal rings and operations, if you are not in support of this you are probably a criminal minded person.

lol, Just wait until you tell the victim where you know you are innocent, but your address happens to fall under an address which has received funds from a service which they flagged, and your small holding got freezing only then will you understand the true meaning of freedom from centralised control.

[Ojima-ojo]

When they don't, and we never know if they actually have the reserve that they claim, it's always such a gamble to keep your money in USDT. The emergence of USDT led to a lot of further stablecoins later, but it was the root of all evil, at least it's mostly used for trading purposes and nothing else.

USDT is a big risk as a storage of our money, at least I don't recommend stablecoin for long-term holding. It should be used for convenience, just like your bank account and the balance in it. Knowing fully well that you don't have control over the money, it can freeze at any time.


Bitcoin is key for asset holding as far as long term us involved and concerned.

[Luzin]

In 2019, mk4 made a thread [UPDATED] PSA: Most Stablecoins Can Be Frozen, Even in Your Own Wallets discussing that almost all stablecoins have a freeze feature from the developer. So we need to be careful when using them. Then, on our local board, we also discussed this issue. Chikito Made thread [Hati-hati] Stablecoin USDT, USDC, PAX, TUSD, dll Tidak bisa diakses [Frozen].  This is update USDT frozen until juny 2023

Update AKHIR di bulan Juli 2023

Terakhir update setelah 7 Juni 2023 sudah ada sekitar 9x Stable Coin jenis USDT dan USDC yang dibekukan atau frozen di wallet, berikut ini transaksinya:

1. An address with a balance of 1,475,000 #USDT (1,476,622 USD) has just been frozen! - Berada di jaringan TRON
2. An address with a balance of 4,118,579 #USDT (4,120,536 USD) has just been frozen! - Berada di jaringan ETHEREUM
3. An address with a balance of 1,275,850 #USDT (1,276,086 USD) has just been frozen! - Berada di jaringan TRON
4. An address with a balance of 5,496,936 #USDC (5,496,732 USD) has just been frozen! - Berada di jaringan ETHEREUM
5. An address with a balance of 30,138,618 #USDC (30,137,502 USD) has just been frozen! - Berada di jaringan ETHEREUM
6. An address with a balance of 27,653,475 #USDC (27,652,451 USD) has just been frozen! - Berada di jaringan ETHEREUM
7. An address with a balance of 1,042,195 #USDT (1,043,028 USD) has just been frozen! - Berada di jaringan ETHEREUM
8. An address with a balance of 1,492,821 #USDT (1,494,015 USD) has just been frozen! - Berada di jaringan ETHEREUM
9. An address with a balance of 1,599,680 #USDT (1,606,206 USD) has just been frozen! - Berada di jaringan TRON

A few months ago, if I'm not mistaken, DEV even froze USDT suspected of being used by Iran. U.S. authorities and the stablecoin issuer Tether froze USDT linked to Iranian entities to enforce sanctions and fight illegal finance. Tether can block wallets centrally, and large-scale enforcement actions have crippled hundreds of millions of dollars connected to Iran's Central Bank and the Islamic Revolutionary Guard Corps (IRGC).

CMIIW

[YellowSwap]

Another event as a strong warning to newbies or any people who think that stable coins are safe for their money storage in long term. Even in short term, it's already not safe, funds can be frozen anytime, so there is nothing as long term or short term.

Another risk is depeg.

It's not about terror-related or not, but stable coin companies can freeze stable coins in wallets anytime.

I don't understand why a terrorist group would hold USDT in a Tron wallet. I mean they could use the other network like Bitcoin ETH, etc instead of tron network. Maybe those accounts are being frozen for some other reason and tether redirect them by making it as terror group Wallets. Now a days Tether becoming untrustable for me who knows if they will froze my wallet when i hold them.

Let's leave that for the terrorists to argue about, the thing is some terrorists are stupid while some of them are smart, they use whatever they feel it's better to use for their crime, it doesn't have to be something we think it's best.

I'm cool with USDT, they are completely centralised but I have no problem with their freezings because trust me I will never be one of those people, instead of people to appreciate that fact that they can freeze stolen funds everyone is talking as if USDT is Bitcoin.

No one is going to be a victim unless they move unclean money using USDT, if you care about decentralisation like I do stay with Bitcoin only, store your funds on Bitcoin, and there is a decentralised stablecoin too, DYOR...

[noorman0]

I don't understand why a terrorist group would hold USDT in a Tron wallet. I mean they could use the other network like Bitcoin ETH, etc instead of tron network. Maybe those accounts are being frozen for some other reason and tether redirect them by making it as terror group Wallets. Now a days Tether becoming untrustable for me who knows if they will froze my wallet when i hold them.

If they don't find an exchange with substantial liquidity to get coins that are at least censorship-resistant, those funds will remain trapped on the network until authorities take action.
Terrorists often source their funds from hacks, targeting random coins they can drain. They have no flexible options.

[Cookdata]

Let's leave that for the terrorists to argue about, the thing is some terrorists are stupid while some of them are smart, they use whatever they feel it's better to use for their crime, it doesn't have to be something we think it's best.

I'm cool with USDT, they are completely centralised but I have no problem with their freezings because trust me I will never be one of those people, instead of people to appreciate that fact that they can freeze stolen funds everyone is talking as if USDT is Bitcoin.

No one is going to be a victim unless they move unclean money using USDT, if you care about decentralisation like I do stay with Bitcoin only, store your funds on Bitcoin, and there is a decentralised stablecoin too, DYOR...

It's not cool to freeze USDT. What's the essence of stable coin if uou can't use it like you want. Why not just use bank transfer instead of stablecoin that can be freeze. If the bank freeze my account, I can work in to the bank premise and demand for why they frozed my account but you see Tether and cycle, they don't have office where you can walk into and make any complaints, if it's freeze you will complain until you get tired of complaining.

I used stablecoins for settlements of debt and I used it to trade to my local currency but not for one day that I have used stable coins for other things, I don't even have the courage to keep it on external wallet or on any exchange, there is nothing useful in stablecoins that you can't get it with Bitcoin, you can never get your Bitcoin freeze unless you send it to an exchange which to me it's a nonsense thing to do.

[bhadz]

USDT is a big risk as a storage of our money, at least I don't recommend stablecoin for long-term holding. It should be used for convenience, just like your bank account and the balance in it. Knowing fully well that you don't have control over the money, it can freeze at any time.


Bitcoin is key for asset holding as far as long term us involved and concerned.

Stable coins like Tether(USDT) isn't for long term holding. The long term holding is more applicable to assets like Bitcoin. While stable coins can give convenience and ease of transaction due to not that much volatility and it keeps the value of what you have in it, the risk is there of being freezing the usdt that you're holding. Not because you're a bad guy or a terrorist but when they trace where the funds goes to and came from. Even if you have no history for that, there's a way for them to trace it and it's easier if you got that from an exchange.

[MusaPk]

It's not cool to freeze USDT. What's the essence of stable coin if uou can't use it like you want. Why not just use bank transfer instead of stablecoin that can be freeze. If the bank freeze my account, I can work in to the bank premise and demand for why they frozed my account but you see Tether and cycle, they don't have office where you can walk into and make any complaints, if it's freeze you will complain until you get tired of complaining.

I used stablecoins for settlements of debt and I used it to trade to my local currency but not for one day that I have used stable coins for other things, I don't even have the courage to keep it on external wallet or on any exchange, there is nothing useful in stablecoins that you can't get it with Bitcoin, you can never get your Bitcoin freeze unless you send it to an exchange which to me it's a nonsense thing to do.

The decentralized nature of Bitcoin make it impossible for any authority to freeze them. While stable coins are created by a company who has full control to freeze the coins. The stable coins are very much similar to CBDC. If someone has this basic  understanding of stable coins then he will be in good position to make decison regarding whether to go for stable coins or not. It's not cool to freeze stable coins but companies are doing this for there own benefits and if you don't like this then simply don't use stable coins.

[Catenaccio]

The decentralized nature of Bitcoin make it impossible for any authority to freeze them. While stable coins are created by a company who has full control to freeze the coins. The stable coins are very much similar to CBDC. If someone has this basic  understanding of stable coins then he will be in good position to make decison regarding whether to go for stable coins or not. It's not cool to freeze stable coins but companies are doing this for there own benefits and if you don't like this then simply don't use stable coins.

Firstly it is proof of work, secondly it does not work with smart contract, lastly it is decentralized.

All these things make Bitcoin blockchain is impossible for reverse transactions, roll back of the blockchain like Ethereum already had, there is no power from the founder or developer to freeze bitcoin in any non custodial wallets that is different than stable coins from centralized companies and deployed on centralized altcoin blockchains.

CBDCs are more centralized in hands of central banks and governments than stable coins but they have common risk for users. No control of funds even in non custodial wallets, funds can be frozen and lost anytime.