Tether Freezes $1.45 Million in USDT Belonging to THORChain, Reopens Two Addresses

Tether has frozen one point four five million dollars in USDT belonging to the cross-chain decentralised exchange THORChain, citing compliance obligations. The company also confirmed that two previously frozen addresses have been unfrozen after a review.

The freeze was executed at the request of law enforcement or regulatory authorities, according to Tether's standard procedure for such actions. The company has not disclosed the specific nature of the compliance concern.

THORChain is a decentralised exchange protocol that enables cross-chain swaps without wrapping assets. The protocol has been the subject of regulatory attention due to its ability to facilitate cross-chain transactions that may fall outside the jurisdiction of any single regulator.

The unfreezing of two addresses suggests that Tether's review found no ongoing compliance concern with those specific wallets. The company regularly freezes and unfreezes USDT addresses as part of its compliance programme.

The incident highlights the tension between decentralised finance protocols and the compliance requirements of stablecoin issuers. Tether's ability to freeze USDT addresses gives it significant power over where and how the stablecoin can be used.