April 17, 2024

Tether Has Frozen 46 Million USDT Belonging to FTX

Tether has announced the freezing of 46 million USDT belonging to FTX,  the second-largest crypto exchange. The company’s spokesman revealed that the action was a decree from the legal authorities. FTX’s CEO has been under probe since the collapse of his exchange on Monday. 

United States SEC Begins FTX Probing 

The United States Securities and Exchange Commission(SEC) has launched procedures to probe the FTX exchange. The Commission will focus on how FTX US manages its user’s assets. Also, FTX transactions in the third quarter( Q3) will be probed to unveil the cause of FTX’s fortune.

The US SEC directed Tether to freeze FTX’s USDT assets as the investigation continues. The stablecoin company immediately executed the court order by freezing over $46 million worth of USDT. FTX held the asset on a single USDT-TRC network before it was frozen until further notice.

The SEC Chairman, Gary Gensler, opined that there is an urgent necessity for investor’s fund conservation in the crypto space.  He revealed that the SEC is monitoring transactions between crypto firms. The commission’s decision will be based on the experiences amassed from the current events in the crypto industry.

Tether’s Reaction to the Judiciary Order

In response to the freezing of the FTX account, Tether’s spokesman replied to Coindesk ‘s mail. He said “Tether has received a petition from law enforcement authorities to freeze FTX till further notice. The company will be looking forward to hearing the next direction that will emanate from the authorities involved.”

He told CoinDesk that Tether had opened negotiations with the law agents comprising the United States Department of Justice. Such action was aimed at promoting the firm’s translucency and accountability.

However, the USDT value declined to $0.982 in the early hours of the day. The stablecoin value has regained its value back to 0.99. The frozen FTX asset will be released after the ongoing probe.

FTX’s hope of receiving assistance from Binance was scattered today when CZ announced his withdrawal from the deal. Meanwhile, the crypto industry has witnessed downtrends attributed to the unexpected FTX collapse event. The freezing of FTX USDT assets was part of the measures taken to probe Sam Bankman-Fried.

Leave a Reply

Your email address will not be published. Required fields are marked *