Key Takeaways
- Tether is freezing USDT wallets belonging to FTX.
- At the very least 46,360,701 USDT has been blacklisted to date.
- Tether is reportedly freezing funds by request from legislation enforcement.
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Centralized stablecoin issuer Tether has frozen funds belonging to FTX.
Funds Locked
In line with information from Whale Alert, no less than 46,360,701 USDT of FTX’s funds was frozen right now at 14:11 UTC.
Whereas neither Tether’s official Twitter account nor the corporate’s CEO Paolo Ardoino have publicly disclosed the explanation for the freeze, crypto information account db claims the blacklist was issued on the request of legislation enforcement. FTX is now reportedly beneath investigation.
FTX is without doubt one of the main cryptocurrency exchanges on the planet. Because of doubts surrounding the solvency of Alameda Analysis, an affiliated quant buying and selling agency, FTX ended up being the topic to a “financial institution run” in the previous couple of days; the alternate unofficially paused withdrawals on Tuesday and sought exterior assist in plugging the quickly rising gap in its steadiness sheet, presently rumored to be value roughly $10 billion.
Lead cryptocurrency alternate Binance initially introduced it could be buying FTX to insure clients can be made complete, however walked away from the deal yesterday, citing considerations over misuse of consumer funds by FTX.
Whereas nonetheless unconfirmed, rumors are circulating that FTX could have used buyer funds to shore up Alameda Analysis liquidity in Might or June following the brutal market downturn attributable to the Terra crash, Three Arrows Capital wipeout, and subsequent contagion throughout the crypto business.
This can be a creating scenario.
Disclaimer: On the time of writing, the writer of this piece owned BTC, ETH, and several other different cryptocurrencies.
