Report: Tether freezes $46 million of FTX's USDT, setting new precedent

Tether has so far only frozen USDT funds held in private wallets at the request of law enforcement.< /p> Recent news

According to blockchain transaction data provided by WhaleAlert on Nov. 10, Tether appears to have frozen 46,360,701 USDT (USDT) ($46,274,472) held by struggling cryptocurrency exchange FTX in its Tron blockchain wallet . The move comes a day after the U.S. Securities and Exchange Commission and the U.S. Department of Justice began investigating FTX over its liquidity crisis.

A spokesperson for Tether said on Oct. 11 that the company only freezes private wallets when it receives a legitimate request from a verified law enforcement officer to do so and that "we don't not freeze exchange or service wallets". If confirmed, the freeze imposed on FTX's portfolio would be the first of its kind. On the same day, Japanese authorities ordered FTX to halt operations in the country after the exchange halted withdrawals.

Update (November 10, 15:45 UTC): A Tether spokesperson contacted by Cointelegraph said: "While we cannot comment specifically, Tether regularly maintains open dialogue with law enforcement, including the United States Department of Justice, as part of our commitment to cooperation, transparency, and accountability.”

“Amidst rumors of the insolvency of crypto exchange FTX and concerns about the financial conditions of Alameda Research, we would first and foremost like to act as a spokesperson for the entire crypto ecosystem and reiterate that 'a crisis does not make an industry. ”

In response to several unconfirmed rumours...