Tether Freezes USDT Funds in 131 TRON Wallets After OFAC Sanctions Update

Tether, the issuer of the popular stablecoin USDT, has frozen funds linked to 131 TRON wallets after an update from the Office of Foreign Assets Control (OFAC). This move highlights the control that centralized stablecoin issuers can exercise when it comes to sanctions lists and blacklists.

The action was taken following an updated OFAC sanctions list, which included a broader identifier list with 134 crypto addresses, including Monero addresses. The freeze is a reminder that major stablecoins are not neutral bearer assets like native coins like Bitcoin.

Tether's ability to block specific addresses from moving tokens when they appear on sanctions lists or are linked to criminal-finance investigations has been a contentious issue within the crypto community. However, it is also one reason why stablecoins have remained usable at scale across regulated exchanges and trading venues.