Tether Freezes Record Amount of USDT, Raising Concerns About Centralized Control

Tether's recent freeze of over $514 million in USDT across Ethereum and Tron has sparked debate about the company's growing enforcement role in the crypto ecosystem.

The move marks a significant uptick in blacklisting activity by Tether, with approximately $4.2 billion in USDT frozen over the past three years.

The majority of the frozen funds were immobilized on Tron, with $505.9 million locked up in 328 addresses, while $8.73 million were frozen on Ethereum in 42 addresses.

Tether's centralized control structure has enabled compliance and security, but also raises concerns about overreach and impacts on liquidity.