Tether froze another $39.27M USDT linked to Xinbi Guarantee.
Xinbi has been accused of facilitating money laundering and fraud tied to scam operations in Southeast Asia, and the UK sanctioned the network earlier this year.
This isn’t even the first time Tether has gone after funds connected to these guarantee networks. Earlier freezes and sanctions have already targeted parts of the same ecosystem.
I get why Tether does it, but every time millions of USDT can be frozen by one company, it reminds you how centralized these stablecoins are.
That can seriously damage trust in USDT if users start worrying that their funds can be frozen at any moment.
And with corrupt governments involved, that’s fucking alarming.