Tether Blocks 5 Wallets After Receiving 54.1M USDT

Tether Blocks 5 Wallets After Receiving 54.1M USDT

Elena Vasquez
2 min read

Tether's Wallet Blacklisting and Kraken's Potential Delisting Signal Regulatory Pressure on Stablecoins

Tether, the stablecoin company, has taken action to block five wallets after they received a total of 54.1 million USDT. The wallets had previously dispersed funds to other wallets. Notably, this is not the first time Tether has implemented such measures, as they had previously frozen about 225 million USDT in connection with a human trafficking investigation. In response to increased regulatory scrutiny, Tether is actively screening customers for compliance and blacklisting suspicious wallets. Additionally, Kraken, a cryptocurrency exchange, is contemplating the removal of Tether from its platform due to the upcoming regulations set forth in the European Union's Markets in Crypto Assets (MiCA) framework.

Key Takeaways

  • Tether blacklists five wallets with 54.1 million USDT linked to suspicious activity.
  • Previously froze 225 million USDT in connection with a human trafficking investigation.
  • Tether is actively screening customers and blacklisting suspicious wallets due to increased regulatory scrutiny.
  • Kraken may remove Tether from its platform to comply with the European Union's MiCA regulatory framework taking effect in July.
  • New MiCA regulations may impose restrictions on stablecoins like Tether's USDT, affecting their use within the EU.


Tether's conscious effort to blacklist wallets and Kraken's contemplation of delisting Tether indicate a mounting regulatory pressure on stablecoins. This development has the potential to influence other exchanges and crypto platforms, compelling them to reassess their affiliations with stablecoin providers. In the short term, this may lead to a reduced role for USDT in the EU, consequently impacting market liquidity and prices. Over the long term, heightened regulations could spur the development of decentralized stablecoins, while centralized ones face intensified scrutiny. Financial institutions and crypto investors may need to adapt to these shifts, considering the implications of potential restrictions on stablecoin usage.

Did You Know?

  • Stablecoin: A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve of assets, often a fiat currency like the US dollar. Tether's USDT is an example of a stablecoin, aiming to keep its value at 1 USDT = 1 USD.
  • Tether Freezing Funds: Tether has the authority to freeze funds associated with specific wallets to prevent potential illicit activities, such as human trafficking or suspicious behavior. When Tether freezes funds, it effectively renders the USDT tokens in those wallets unusable until unfrozen.
  • Markets in Crypto Assets (MiCA) Framework: MiCA is an upcoming regulatory framework in the European Union that will govern cryptocurrency markets. It is set to impose limitations on stablecoins like Tether's USDT, potentially impacting their utilization within the EU. Consequently, cryptocurrency exchanges such as Kraken are contemplating the removal of Tether from their platforms to adhere to the new regulations.

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