Tether, the creator of the leading stablecoin USDT, has been on a blacklisting spree and has blacklisted at least 39 Ethereum addresses since November 2017. Out of these 40 addresses, 25 have been blacklisted this year.
Philippe Castonguay, an Ethereum researcher, has created a dashboard that shows the number and list of addresses blacklisted by Tether up until now. All these blacklisted addresses would not be able to send or receive USDT, and the existing tokens in these addresses became useless. All the blacklisted addresses contain the millions worth of USDT and even one of the latest blacklisted address contain over a $1 million worth of tokens.
The million-dollar Ethereum address received 938,965 USDT tokens from Binance only last month. The owner of the address tried moving the funds the next day. It got blacklisted, but the transactions never went through.
Among all the blacklisted addresses, a majority of them contain around $100 USDT on average. However, the most valuable address consists of $4.5 million worth of USDT, along with 330,000 BUSD tokens and 13,500 ETH in it.
The blacklisting is mainly done if the address is suspected to be involved in any form of illegal or unusual activity and often on the request of authorities. As of right now, no one knows who owns these Ethereum addresses containing millions worth of cryptocurrencies.
“Tether routinely assists law enforcement in their investigations… Through the freeze address feature, Tether has been able to help users and exchanges to save and recover tens of millions of dollars stolen from them by hackers.”