$39.3M USDT Frozen on Tron by Tether

[fullfitlarry]

https://x.com/TheBlockCo/status/2097374554528108870

Oh well, maybe they can froze that amount because it came from illicit activities. Nevertheless, when we hear that Tether freezing accounts, I don't know but it has a bad connotation from us crypto enthusiast.

Because we think that they have so much power that they can freeze anyone's account.

Regardless, this might put a stop on Xinbi, or at least this marketplace will have to think twice for using USDT in their transactions.

But still for us just average joe Tether user, we might be very careful to used it as we don't want to get our account frozen for whatever reasons.

[$crypto$]

So Xinbi it opened his service in Telegram, does not have any website? But they managed to launder $24.2 billion in proceeds from illegal activities from 2022 to 2026. So many criminal groups trust this service.

Already we know Tether is centralized they can freeze USDT at any time at the request of the court, even their own decision.

What is certain is that we as stablecoin users must ensure that the flow of funds received is clean and has nothing to do with any illegal activities, so at least it will be safe.

Edit, Add news.

According to @Bitrace_team - - - Xinbi announced that they are now supporting the usdd stablecoin under the tron network which cannot be frozen.
https://x.com/Bitrace_team/status/2097346028026687741

Losses of USDT-trc20 frozen by Tether have reached $45m with 19 addresses including 2 addresses from Xpay.
https://x.com/Bitrace_team/status/2097376491252453848

[asriloni]

Honestly, it's a bit weird Tron is just taking an action when the awareness about how Xinbi ran shady business has been revealed since a year ago. two digits billions already money laundered through this market, and it's showing how slow the action taken by crypto platform to fight the scam activities.

Recently, Xpay, which is illegal payment tool service is also announcing their service gets suspended due to this ban, but sadly it's likely they will continue after USDD will be fully integrated.

According to @Bitrace_team - - - Xinbi announced that they are now supporting the usdd stablecoin under the tron network which cannot be frozen.
https://x.com/Bitrace_team/status/2097346028026687741

Despite the announcement, USDD is not yet available because they're still testing it. However, i expect they to continue their scam service in the next days. It's very sad the decentralization is just providing criminals to laundering the money stolen from innocent people.

Hopefully, all of cexes will be banning everything related to the Justin Sun because i belive most of Sun related platforms use for the criminal activities.

[ColdLava40]

What is certain is that we as stablecoin users must ensure that the flow of funds received is clean and has nothing to do with any illegal activities, so at least it will be safe.

How do you tell that the coins sent to you are clean and safe?

I'm not a tech savvy investor and I'm sure many others would be like that too, so it would be difficult for many to analyze the origin of these coins knowing if they had been linked to a criminal activity, although this should be for the innocent ones.

But that is not the main lesson here. Centralized tokens basically don't belong to anyone. They own the network, they control the system, they can shut it down like a shit show at any time, and there's nothing you can do. so it is important to know where you store your cryptocurrency.

Bitcoin gives you that control which others don't.

[_act_]

Tether, Circle and those stable coins issue, even including othernsrsbke coins they are not fiat backed like PAXG and other RWA can be frozen.

Tether will not just freeze the coin until it is linked to fraud or government order the stable coin issue to freeze it.

If Xinbi know what they are doing and Tether is not cooperate, Xinbi should report the Tether and let them settle it in court.

According to @Bitrace_team - - - Xinbi announced that they are now supporting the usdd stablecoin under the tron network which cannot be frozen.
https://x.com/Bitrace_team/status/2097346028026687741

Are they sure it can not be freezed? If it can not be freezed, I can add it to the lists of stable coins that I am using. I have read about the coin and I see it to be a good one.

[hugeblack]

Nothing has changed; both Tether and Circle have the ability to freeze these tokens. So far, their policies haven't shifted to target smaller wallets(those holding between $1,000 and $100,000)but anything could happen in the future.

Losses of USDT-trc20 frozen by Tether have reached $45m with 19 addresses including 2 addresses from Xpay.
https://x.com/Bitrace_team/status/2097376491252453848

They are foolish enough to keep $45 million in an asset that can be frozen.

[Taskford]

Nothing has changed; both Tether and Circle have the ability to freeze these tokens. So far, their policies haven't shifted to target smaller wallets(those holding between $1,000 and $100,000)but anything could happen in the future.

Well this is what you can get from centralized coins.

So there's tendency that freezing of funds might going to happen if both of those platform goes crazy.

Losses of USDT-trc20 frozen by Tether have reached $45m with 19 addresses including 2 addresses from Xpay.
https://x.com/Bitrace_team/status/2097376491252453848

They are foolish enough to keep $45 million in an asset that can be frozen.

Exactly because that decision for putting huge money on stable coins could possibly give them a problem in future.

Maybe think about short term when dealing with stablecoins. Its not worth to hold those coins, because there's nothing to gain if they do that.

I think better option to grab is Bitcoin, since there's no central authority controlling it.

[prp-e]

Were these wallets from Iranian CEX's?

[$crypto$]

Updates on Xinbi.
An interval of several hours activated USDD and after 15 hours Xinbi received a stream of 157K USDD.

It wasn't long before the channel was blocked by the authorities until the TNS domain was invalid, I didn't know where else they would switch to.
The fact is, there are still many people using this service after USDD is activated.
https://x.com/Bitrace_team/status/2097628921273655644
https://x.com/Bitrace_team/status/2097723352576373062

Are they sure it can not be freezed? If it can not be freezed, I can add it to the lists of stable coins that I am using. I have read about the coin and I see it to be a good one.

Yes no one can freeze this stablecoin.  https://legacy-docs.usdd.io/

Similar to BTC and ETH, USDD grants its holders full ownership, meaning that no organization or individual has access to freeze users’ USDD.

[TastyChillySauce00]

Are they sure it can not be freezed? If it can not be freezed, I can add it to the lists of stable coins that I am using. I have read about the coin and I see it to be a good one.

Yes no one can freeze this stablecoin.  https://legacy-docs.usdd.io/

Similar to BTC and ETH, USDD grants its holders full ownership, meaning that no organization or individual has access to freeze users’ USDD.

That seems to be true even on the published contract address but there's a catch on this, it is backed by Tron DAO reserve and Tron DAO reserve is made up of USDC and USDT according to their docs and several coin like TRX, Tether could freeze the USDT on Tron DAO reserve and it will lose large portion of the peg.

Moreover, the stablecoin is issued by Tron DAO reserve and Tron DAO reserve is owned by Justin Sun. Xinbi as a sanctioned entity is using USDD, is the reserve going to be fine ? you should think about it if you decided to use USDD. The contract is good but the reserve is the weak point.

[Curious T]

Oh well, maybe they can froze that amount because it came from illicit activities. Nevertheless, when we hear that Tether freezing accounts, I don't know but it has a bad connotation from us crypto enthusiast.

The problem with centralized platforms like this is that they may actually be freezing accounts of guilty people, but what happens when the people with that power misuse that power? They can decide to use it to go after their enemies or competition. Government bodies can also use it to go against the opposition. Crypto is supposed to be something that the owners have full control over and no other person can have power over. It doesn't sit well with me. For now, people might say, if you don't have anything to hide, then you have nothing to worry about, but what happens when their idea of a crime is no longer a universal idea? I mean, being against the government is a crime, but what if the government is the one wrong?

[Ucy]

Just have to becareful what you allow in your  business. If you don't self-regulate they will do that for you and the outcome could be disastrous. Even if you decide not to get directly involved in the crime fund, they would do that themselves to attract government attention... for example, by using your business to transfer dirty money. 
The responsible thing to do is to be part of the community in blacklisting and confisticating funds with absolutely proven criminal origin. This has to be evidence based, transparent and trustless as possible

[jossiel]

Never heard of Xinbi before but it seems a huge market for these whales to launder money, this might be part of a bigger circle where the hacked funds went through.

Yes no one can freeze this stablecoin.  https://legacy-docs.usdd.io/

Similar to BTC and ETH, USDD grants its holders full ownership, meaning that no organization or individual has access to freeze users’ USDD.

Does this means that they can also exchange USDD into another crypto? Well, they are doing it on the next level to avoid sanctions isn't it?

This looks specific on its purpose and if Sun is involved in this, would he be called for some investigation since it involves a lot of money?

[Slow death]

I’m really not surprised by these kinds of decisions; the cryptocurrency market is more regulated these days than in the past, and serious companies want to maintain good relationships with governments, so they distance themselves from illegal activities or things suspected of being criminal. I read a news story on Cointelegraph about Xinbi. this was the article:

US sanctions Xinbi scam marketplace, restrains $52M in crypto

source: https://cointelegraph.com/news/us-sanctions-xinbi-restrains-52m-crypto

The article states that the U.S. Department of Justice seized Xinbi's Telegram channel; from what I gather, they are accusing Xinbi of money laundering. $52 million in cryptocurrency was seized, and the U.S. Department of the Treasury sanctioned Xinbi and its suppliers. Just imagine—would Tether want to face sanctions too? Naturally, they wouldn't want to tarnish their reputation, so they acted wisely by taking this step to avoid trouble with regulators and laws in the U.S. and other countries.

[o48o]

Nothing has changed; both Tether and Circle have the ability to freeze these tokens. So far, their policies haven't shifted to target smaller wallets(those holding between $1,000 and $100,000)but anything could happen in the future.

Losses of USDT-trc20 frozen by Tether have reached $45m with 19 addresses including 2 addresses from Xpay.
https://x.com/Bitrace_team/status/2097376491252453848

They are foolish enough to keep $45 million in an asset that can be frozen.

I would say that this is just phase one. If that $45 million is flagged in the first place, you would need to prove the origin when you want to cash that out, no matter what form that is in then.

Reason why smaller wallets aren't being targeted is same as why only small amount of these people get caught. It's because lack of resources. When government is trying to get laundered money, it does make sense to start from the most obvious cases that are easiest to prove, and biggest wallets. It doesn't make much sense to go after smaller wallets when they need to pay more to investigate them.

[Ojima-ojo]

Stablecoins are centralized and the power to freeze them wherever their kept is the the censorship we expected from them and the real power in centralized network. Optioning in for tether USDT is having the understanding that you dont have control over your coins incase of any legal problems involving the coins, unlike decentralized coins like Bitcoin that give it holder the 100% freedom.


USDT that are Frozen in wallet because useless to the hacker's, and also the owner since their are not going to reaburse back into their wallet owners who lost them to the hacker's, and I believe legal step are followed before granting the team such power and righ to freeze those coins. We must know both the advantages and dis advantage of holding using stablecoins like tether.