THORChain exec accuses Tether of temporarily freezing USDT vaults
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Chad Barraford, co-founder of THORChain, accused stablecoin issuer Tether of temporarily freezing about 1.45 million USDT in four of the network’s vaults without explanation. The addresses were blacklisted and unfrozen hours later, with no prior communication from Tether. Barraford stated THORChain is seeking dialogue with Tether to understand the decision. Cointelegraph attempted to get comments from both parties but received no immediate response.
Why it matters
The source does not explicitly explain the impact of this incident. However, the freezing and unfreezing of funds without explanation could raise concerns about the reliability and transparency of stablecoin custodians, affecting user trust and operational confidence in crypto networks like THORChain.
Key context
The source notes ongoing tensions surrounding Tether's freezing of funds, referencing recent legal actions against Tether for similar freezing of USDT linked to investigations or informal requests by authorities. Conduit Technology sued Tether over $2.76 million frozen in a Brazilian probe, and two Thai nationals filed suit after $42.4 million was frozen allegedly following a US Homeland Security request.
Key numbers and entities
THORChain technical co-founder Chad Barraford; Tether stablecoin; approximately 1.45 million USDT frozen and unfrozen across four wallets; Conduit Technology’s $2.76 million lawsuit; two Thai nationals’ $42.4 million lawsuit against Tether.
What remains unclear
The reason why Tether blacklisted and then unfroze THORChain’s vault addresses is not disclosed. Communications or justifications from Tether regarding this incident are absent, and it is unclear whether this was an error, a misunderstanding, or related to regulatory actions. The effects on THORChain’s operations beyond the temporary freeze are not detailed.