Stablecoins? They can be freezed? Should i use them and worry?

[Newfish2024]

So If i have usdc usdt ?
Can be freezed? Should i use them and worry about ?
Even If my crypto wallet or exchanger not involved in any bad activities so why someone can freeze basicly to steal my money ?
Can they actually freeze i call it stealing my money ? Or it's mostly rumours ?
If so then who have responsebility legally and does there any notice to stablecoins owners ?
Will be some stablecoins more safer then others?
If they don't be trusted don't they are afraid of losing the users.
How often that happens ?
have this happened with you ?
Im sure this topic is still confusing for many members ? 

T be honest i would not take it easy this let's say i have about 3000 USD in stablecoins and they will be just gone for sure i will find wich hand was stealing my funds and making the person counteble If legal ways works because how can we operate If no trust ?

[OmegaStarScream]

Unless you have been involved in an exchange's heist, terrorism, or that type of thing, you probably shouldn't worry about Tether (or any token issuer) freezing your assets. But yes, it is possible for them to do so, if they want to. A few examples here[1][2].

As for the alternative, then you can check this discussion[3]. It's been two years though, so some things might have changed since then. Make sure to do more research if decide to go with one of the suggested tokens.

[1] https://cointelegraph.com/news/tether-freezes-usdt-phishing-scams
[2] https://tether.io/news/tether-freezes-32-addresses-linked-to-terrorism-and-warfare-in-israel-and-ukraine/
[3] https://www.reddit.com/r/ethereum/comments/z6shcr/which_stable_coins_do_not_freeze_assets/

[DubemIfedigbo001]

Centralized exchanges and services is an obvious red flag to preserving your coins, exchanges get hacked, some file for bankruptcy and others might shut down for one reason or the other. You need not keep your funds in USDT or USDC unless you need them for instant liquidation. If you are interested in saving your coins let's say for a period of 4 - 10 years or more, you should consider investing them in Bitcoin and sending the coins to a decentralized wallet for safer keeping. Good thing is that you'll get some considerable profits if you invest for a long term with the discretionary funds.

The best way to preserve your coins is to embrace decentralization, find a decentralized wallet like Electrum or Blue wallet and save your coins there. Backup your seed phrases offline to prevent electronic compromise and note If it's not your keys, it's not your coins

[Sanitough]

So If i have usdc usdt ?
Can be freezed? Should i use them and worry about ?

It can definitely be frozen since the issuer is regulated. If there’s a court order directing the regulators to freeze an account, they have no choice but to comply with it.

Even If my crypto wallet or exchanger not involved in any bad activities so why someone can freeze basicly to steal my money ?

Even if you’re not directly involved, if a transaction passes through your wallet, you could be flagged, and your account might be frozen for investigation.

Can they actually freeze i call it stealing my money ? Or it's mostly rumours ?

You might see it as stealing from your perspective, but if it's an order from the regulators, it's considered a lawful act, and they can't be charged with theft legally.

If so then who have responsebility legally and does there any notice to stablecoins owners ?

You’ll need to reach out to the issuer and possibly file a legal action if you want to fight for your rights.

Will be some stablecoins more safer then others?

I think DAI

If they don't be trusted don't they are afraid of losing the users.

How often that happens ?

Freezing funds is rare and usually happens with large amounts. They're aware of this, but as mentioned, they are guided by the law and must follow the rules set by the regulators.

have this happened with you ?
Im sure this topic is still confusing for many members ? 

Not yet, hopefully it won't happen, but freezing of funds has occurred before.

[Charles-Tim]

First of all, know that those are coins backed by fiat. You can call them fiat-backed stable coins. There are other stable coins like wBTC, tether gold and many other assets that are backed by assets that are not stable but the are called stable coins becuase their prices are almost the same with the price of the assets they are backed with.

You do not need to be worried about those coins if you use it legitimately. The only worry people have is if the coin depegged. Some stable coins have disappointed people in the past as they depegged, especially the algorithmic stable coins.

[Findingnemo]

Will be some stablecoins more safer then others?

Decentralized stable coins like DAI is another choice if you still want to hold the funds in a stable coin instead of fiat but it has low trading volume unlike USDT so it doesn't really serve the purpose of liquidation when it's needed so the best choice is keep the stash in bitcoin if it's meant to be long term.

But not someone can freeze funds on any address it's only possible if government issued the approval of doing that because the funds were involved in a scam or hack.

[Porfirii]

First of all, know that those are coins backed by fiat. You can call them fiat-backed stable coins. There are other stable coins like wBTC, tether gold and many other assets that are backed by assets that are not stable but the are called stable coins becuase their prices are almost the same with the price of the assets they are backed with.

You do not need to be worried about those coins if you use it legitimately. The only worry people have is if the coin depegged. Some stable coins have disappointed people in the past as they depegged, especially the algorithmic stable coins.

There were rumours that even the most successful stablecoins, like USDT, aren't 100% backed by it's fiat counterpart, with the subsequent risk of depegging.

I regret not having converted some shitcoins I earned in the past that went to zero into stablecoins that would have worked as a refuge from volatility, and I didn't do it precisely because of that fear of stablecoins being spoiled for whatever reason (I didn't invent it: at that time there were multiple articles talking about this topic and, at least in my case, discouraging people from converting into USDT/USDC/...).

More recently I have also read that USDT was in trial, or had been sued, but also that it passed an audit, etc. To be honest, I'm a little lost with so many different stablecoins, rumors and news these days.

[notocactus]

So If i have usdc usdt ?
Can be freezed? Should i use them and worry about ?

There is risk and if you want to store your money in very long term, Bitcoin is your best choice. No one, no entity, no government can seize your bitcoin because only you own private keys of your bitcoins.

It's your Bitcoin private keys, it's your bitcoins.

• PSA: Most Stablecoins can be frozen, even in your own wallets
• Stablecoins and blacklists

Some banned stablecoin addresses:

• https://duneanalytics.com/phabc/usdt---banned-addresses
• https://duneanalytics.com/phabc/usdc-banned-addresses

They are not actually stable but volatile and can depeg too.

• Stable coins: a deep dive into valuation and depegging.
• Tether (USDT) - Backed by Air and Words

[Adbitco]

T be honest i would not take it easy this let's say i have about 3000 USD in stablecoins and they will be just gone for sure i will find wich hand was stealing my funds and making the person counteble If legal ways works because how can we operate If no trust ?

Why going to use centralized coin instead of decentralized coin as bitcoin, stable coin can like decouple and lose its values turning to zero one day just as what happened to Terra luna thereabout, people who had their assets on terra usdt lose heavily so if you don't want to experience you can only usdt or usdc for a main time and after which you can likely convert to bitcoin. Bitcoin is the most safer after you have your seed phrase stored safely and one will touch your money for any reason, you can use a non-custodial wallet to store your money in bitcoin to have peace at which you would panic of your funds.

[X-ray]

Yes they can freeze your money by blacklisting it, you can even see in the contract code, but as far as I know they only freeze money linked to law breaking activity such as scamming and phishing, if you're just average people trying to make money from defi, you're gonna be fine, if you holding it maybe you're gonna be fine, but since it's private owned asset anyway, you still should be careful in case of depegging.

back then there were many scammers trying to scam people using blacklisted USDT to allure people into funding the wallet and then stealing their supposed "fee". so, blacklisting is real.

after all, stablecoins' entire business is solely based on trust, if they just freezing people's money out of nowhere it'll cause uproar.

[BitMaxz]

I don't think they can freeze your USDT or USDC if it's not involved to any illegal  activities since it's centralized crypto it's not the same as Bitcoin. If your wallet or account have involved to any illegal activities they can hold or freeze your account.

Just like what happen to hacked stolen USDT before they blocklisted them so that no one can able to withdraw them to any exchanges. This is the bad part of any centralized crypto they can do what ever they like.

[Reatim]

Stablecoins are mostly owned and operated by centralized institutions so if you are scared of any authority having access to your funds then don’t use it. But it’s not like stablecoins get frozen for no reason. Obviously they will freeze those who have suspicious activity or have caused harm to other people. If you don’t do any of the sort then you can just use stablecoins.

Just consider that stablecoins are not as decentralized as other coins.

[bitbollo]

I am surprised to read such questions because... Most of the answers are "yes" and it should be well known that there is this chance...

Stablecoins have a ToS due their intrinsic nature, not decentralized - they are rappresenting a digital value of a FIAT.
Moreover these coins are emitted by companies, legally they must have a ToS.
https://tether.to/en/legal/ this is the ToS of Tether.

I think just few people that are interacting with these products are just aware of this document / rules inside.

[Newfish2024]

Yes they can freeze your money by blacklisting it, you can even see in the contract code, but as far as I know they only freeze money linked to law breaking activity such as scamming and phishing, if you're just average people trying to make money from defi, you're gonna be fine, if you holding it maybe you're gonna be fine, but since it's private owned asset anyway, you still should be careful in case of depegging.

back then there were many scammers trying to scam people using blacklisted USDT to allure people into funding the wallet and then stealing their supposed "fee". so, blacklisting is real.

after all, stablecoins' entire business is solely based on trust, if they just freezing people's money out of nowhere it'll cause uproar.

For me it look like stealing.
Those who tell Its right thing are not crypto and freedom friends.
Ofc, If there is Strong evidence that my account is invloved into something suspicous but If they will freeze just like that without much reason that's stealing.
And If it's stealing it means some humans are involved me and many others will take it personally If law doesn't help we help ourselfes but that hand will be punished whoever take our hard earned money.
People are just lose all the respect and dignity because of no punishments.

[passwordnow]

Can be freezed? Should i use them and worry about ?

If you are a criminal, you should worry upon sending your stablecoins to centralized exchanges.

Even If my crypto wallet or exchanger not involved in any bad activities so why someone can freeze basicly to steal my money ?

If the source is from "dirty" activities, there's a tendency that your USDT might be frozen and take note that it's not only the USDT itself can freeze your money but the exchange where it is sent, you are at their mercy. And about those dirty activities, it varies on how the exchange you've sent to will figure it out to you. Maybe from mixers, casinos, etc.

[FatFork]

For me it look like stealing.
Those who tell Its right thing are not crypto and freedom friends.
Ofc, If there is Strong evidence that my account is invloved into something suspicous but If they will freeze just like that without much reason that's stealing.

Whoever said that they will "freeze" your funds for no reason at all? Sounds like you're being a bit contradictory. You don't agree that some rules and restrictions exist, but you do agree that some rules and restrictions should exist in certain situations?

And If it's stealing it means some humans are involved me and many others will take it personally If law doesn't help we help ourselfes but that hand will be punished whoever take our hard earned money.
People are just lose all the respect and dignity because of no punishments.

Your position on this is unreasonable. If you decide to use their services and products, then you consequently agree to their terms and conditions. It's a simple matter of contract law. If you're not happy with the terms, you're free to take your business elsewhere. And let's not get started on your threats of vigilante justice. That's illegal and completely irrelevant to this discussion.

[X-ray]

For me it look like stealing.
Those who tell Its right thing are not crypto and freedom friends.
Ofc, If there is Strong evidence that my account is invloved into something suspicous but If they will freeze just like that without much reason that's stealing.
And If it's stealing it means some humans are involved me and many others will take it personally If law doesn't help we help ourselfes but that hand will be punished whoever take our hard earned money.
People are just lose all the respect and dignity because of no punishments.

I mean stablecoin in general, more specifically ones that are owned by some company like USDT, isn't truly a crypto and doesn't really offer freedom, they just offer you a way to keep your wealth from volatility and that's it.
these company also need to abide by law, so they can't be reckless when it comes to this, so it's understandable, there are also other stablecoin in the market that are decentralized with over collateralization mechanism, I think you might want to look into that, but they usually lack the liquidity, so it's not as liquid as USDT and not everywhere accepts their pair.

[TastyChillySauce00]

I am surprised to read such questions because... Most of the answers are "yes" and it should be well known that there is this chance...

Stablecoins have a ToS due their intrinsic nature, not decentralized - they are rappresenting a digital value of a FIAT.
Moreover these coins are emitted by companies, legally they must have a ToS.
https://tether.to/en/legal/ this is the ToS of Tether.

I think just few people that are interacting with these products are just aware of this document / rules inside.

Yeah I think even most of people understand this, Tether is a profit seeking company, they definitely gonna impose such rules because the legal aspect also forces them to do so, preventing scam is a thing in crypto world.
with USDT capability of blacklisting, it has also helped some people who got their money stolen to freeze the money by inquiring to the company. Its of course can be a double-edged sword since there are probability that there can be mistake in freezing other people's money, but anyone can always appeal to the tether themselves and ask for reason, I'm sure they won't freeze other people's money out of the blue without reason anyway.

the key is contacting them.

[fikrett]

I am surprised to read such questions because... Most of the answers are "yes" and it should be well known that there is this chance...

Stablecoins have a ToS due their intrinsic nature, not decentralized - they are rappresenting a digital value of a FIAT.
Moreover these coins are emitted by companies, legally they must have a ToS.
https://tether.to/en/legal/ this is the ToS of Tether.

I think just few people that are interacting with these products are just aware of this document / rules inside.

Yeah I think even most of people understand this, Tether is a profit seeking company, they definitely gonna impose such rules because the legal aspect also forces them to do so, preventing scam is a thing in crypto world.
with USDT capability of blacklisting, it has also helped some people who got their money stolen to freeze the money by inquiring to the company. Its of course can be a double-edged sword since there are probability that there can be mistake in freezing other people's money, but anyone can always appeal to the tether themselves and ask for reason, I'm sure they won't freeze other people's money out of the blue without reason anyway.

the key is contacting them.

I do agree that their TOS has both pros and cons, but for people seeking decentralization and ownership over their funds - there would be more cons surely.
And, if such a situation occurs, at least people do have some leverage to use to get their funds and the situation going.

[Abiky]

So If i have usdc usdt ?
Can be freezed? Should i use them and worry about ?
Even If my crypto wallet or exchanger not involved in any bad activities so why someone can freeze basicly to steal my money ?
Can they actually freeze i call it stealing my money ? Or it's mostly rumours ?
If so then who have responsebility legally and does there any notice to stablecoins owners ?
Will be some stablecoins more safer then others?
If they don't be trusted don't they are afraid of losing the users.
How often that happens ?
have this happened with you ?
Im sure this topic is still confusing for many members ? 

T be honest i would not take it easy this let's say i have about 3000 USD in stablecoins and they will be just gone for sure i will find wich hand was stealing my funds and making the person counteble If legal ways works because how can we operate If no trust ?

Of course they can be frozen. Basically any centralized stablecoin can be subject to censorship. Only decentralized stablecoins provide true freedom. I'm talking about DAI and the likes. Centralized stablecoins like USDT and USDC have a blacklist where the issuer can "freeze" a certain wallet address if it's flagged as suspicious. Usually, criminals who use stablecoins for money laundering, tax evasion, and terrorist financing. For the average person, there would be nothing to worry about.

This is expected from stablecoins that are subject to regulatory scrutiny. Just like banks. If you're paranoid, use DAI or one of the few other decentralized stablecoins on the market. Even so, you should keep in mind there's nothing 100% safe in this world. Diversification is the key towards minimizing risks as much as possible.