As per Cryptofrontnews, Tether froze $5 million in three wallets, reigniting concerns over centralization risks in stablecoins like USDT, USDC, and BUSD. The move, part of Tether’s T3 Financial Crime Unit (T3 FCU), aims to combat financial crime by tracking and freezing illicit crypto assets. Since its launch in September 2024, the T3 FCU has frozen over $300 million in criminal assets across 23 jurisdictions, including a $3 billion freeze in Brazil’s Operation Lusocoin. The unit collaborates with TRON and TRM Labs, supporting law enforcement in disrupting money laundering, fraud, and terrorism financing. Despite Tether’s efforts, S&P Global recently downgraded USDT to '5 (weak)' due to reserve transparency concerns, though Tether disputes the rating, citing its $15.5 billion gold reserves and global utility.
Tether Freezes $5M in Wallets, Highlighting Stablecoin Centralization Risks
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