Stablecoin issuers must comply with law enforcement, according to the largest stablecoin issuer.
Tether has frozen over 46 million USDT as part of the ongoing saga surrounding FTX.
The company said it had to comply with law enforcement agencies.
Over the past several days, FTX has been the focus of all eyes in the crypto world. Following some discrepancies on the balance sheet of Alameda Research, Binance has since sold its entire FTT reserve.
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The following days brought turbulence, including Binance agreeing to purchase FTX but later rescinding the agreement.
The distressed crypto exchange is being probed by several regulators and law enforcement agencies, which also seems to be impacting other industry participants.
A total of 46.3 million USDT, based on Tron, owned by FTX, has been frozen by Tether. Law enforcement agencies requested this decision, according to a company spokesman.
FTX and Alameda have been found to have no exposure to the stablecoin issuer.
In a separate announcement, the TRON DAO Reserve discussed plans to purchase 300 million USDT before increasing that number to a billion. After USDT had fallen to $0.97 just hours earlier, this news came as a surprise.
#tether processed ~700M redemptions in last 24h.
No issues.
We keep going.— Paolo Ardoino 🍐 (@paoloardoino) November 10, 2022
Tether’s CTO assured fans they could still redeem at $1, despite price differences.
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