Tether Reportedly Freezes $46M in USDT Linked to FTX

Tether Admits To Have Zero Exposure To Genesis Global
  • USDT in cold storage belonged to a single address, which turned out to be FTX’s.
  • Binance made an announcement yesterday saying it is canceling the deal.

Tether reportedly froze $46 million USDT at the request of law authorities. The trusted stablecoin provider has fulfilled the request, which may have been related to the FTX exchange.

Little is known about the nature or goals of the inquiry beyond the fact that it is taking place. A  Tether official said, “We are starting to receive requests from LE to temporarily freeze assets while an investigation occur.”

Tough Times Ahead

After FTX’s misfortune, USDT fell 3% from its $1 peg early today as contagion started to spread.  According to CMC, USDT is valued at a little under $1.

Then it was reported that all the USDT in cold storage belonged to a single address, which turned out to be FTX’s. After the drama surrounding Binance subsided for a few days, the exchange was rocked by a temporary halt in withdrawals caused by liquidity problems.

The aftermath of the FTX debacle has continued to have repercussions on the crypto industry as a whole. Binance’s potential takeover of the crypto exchange was seen as a way to save the platform, however, this will not happen. Binance also made an announcement yesterday saying it is canceling a deal it had negotiated the day before.

Moreover, the announcement of the purchase and the subsequent termination of it has had profound effects on the market. On the other hand, it was immediately followed by FTX stopping all withdrawals, which did nothing to allay concerns about the platform’s health in the wake of the aborted takeover.

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A devoted content writer having 3 years of crypto trading experience. Loves cooking and swimming. Stays up to date with the latest developments on blockchain technology.