According to blockchain transaction data provided by WhaleAlert.io on Nov. 10, Tether appears to have frozen 46,360,701 USDT ($46,274,472) owned by troubled crypto exchange FTX in its Tron blockchain wallet.. The move comes a day after the US Securities and Exchange Commission and Department of Justice began investigating FTX for its liquidity crisis.
A Tether spokesperson stated 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 do not freeze wallets from exchanges or services”. If confirmed, the freeze imposed against the FTX wallet would be the first of its kind. On the same day, Japanese authorities ordered FTX to suspend operations in the country after the exchange stopped withdrawals.
Update November 10, 15:45 UTC: A Tether spokesperson contacted by Cointelegraph stated, “While we are unable to comment specifically, Tether routinely has open dialogue with law enforcement agencies, including the United States Department of Justice, as part of our commitment to the cooperation, transparency and responsibility”.
“Amid rumors of insolvency at cryptocurrency exchange FTX and concerns about the financial condition of Alameda Research, we would first and foremost like to act as a spokesperson for the entire crypto ecosystem and reiterate that one crisis does not make an industry.”
In response to multiple unconfirmed rumors that Tether had USDT exposure to the struggling exchange, the spokesperson reiterated that Tether does not have any credit towards FTX or its affiliated trading company Alameda Research. “Tether tokens are backed 100% by our reserves, and the assets backing the reserves outweigh the liabilities. Tether maintains a strong, conservative, and liquid portfolio, including cash, cash equivalents, and US treasuries,” he said. the source, adding: “Tether will continue to focus on safeguarding those reserves.”
This is a developing story and will be updated accordingly.
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