Tether freezes $85,877 in USDt tied to stolen funds, collaborating with law enforcement. This reignites debate over centralized stablecoin issuers’ role in enforcing crypto compliance, adding to Tether’s track record of $2.5 billion frozen and 2,090 wallets blocked in cooperation with authorities.

Tether’s ability to freeze funds contrasts with truly decentralized cryptocurrencies like Bitcoin and Ethereum. Tether has frozen large sums linked to illicit activity, including $225 million in USDt tied to a human-trafficking network and $700 million linked to Iran. CEO Ardoino embraces Tether’s role as a financial enforcement tool.

Critics raise concerns over Tether’s power to freeze user funds, likening it to a potential central bank digital currency (CBDC) that could undermine crypto values of decentralization. Users fear a slippery slope, questioning Tether’s actions. However, some acknowledge the benefits, noting Tether’s quick response saved $85k from disappearing.

Read more at CoinTelegraph: Tether freezes $85k in stolen usdt, raising new questions about stablecoin control