Warning <$100,000 worth of the stablecoin were frozen in the wallet>

amin20100

newbie

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Quote from: Ryushin on July 09, 2020, 11:36:14 AM

Don't judge on this yet, I suspect that address owner stole that money, it's better for centralized power to deal with criminals, if it's on decentralized projects the criminal will escape with that money, if this is what happened I'm glad the money is frozen

Yes I understand it is used to act against illegal activities and so but the fact is that these stable coins are not decentralized.

Quote from: joseyphil82 on July 15, 2020, 06:41:09 AM

Using stablecoin is only dangerous for criminals not every day crypto users, if you are into illegal activities or you are a scammer don't bother using stable coins or else you will lose your money, in fact I want criminals off crypto space, I like the fact that address are getting blacklisted or freeze, it's really really good

But it also puts power back in a centralized entity's hands. We're talking about a global usage here, what if you're in a country where your government has problems with U.S, even tough you're doing no illegal activities, you are at risk of losing your funds.
In fact FIAT should've just stayed FIAT and keep following its rules. having them in merged in crypto space was not a good idea, crypto space would be better off without them.

Husires

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joseyphil82

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Using stablecoin is only dangerous for criminals not every day crypto users, if you are into illegal activities or you are a scammer don't bother using stable coins or else you will lose your money, in fact I want criminals off crypto space, I like the fact that address are getting blacklisted or freeze, it's really really good

7788bitcoin

legendary

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Quote from: shinratensei_ on July 10, 2020, 11:26:37 PM

It's good if the scammer can't take that amount.

In the future we might see strict actions taken against these scammers rather than just confiscating their coins and i am hopeful that the cryptocurrency market can get rid of all the scammers if they are taking care of scams and mark the coins made through scamming others so that they will not have any valuation and hence getting rid of all the scammers from the market. The future is bright and we will see many developments on that regard.

Febo

legendary

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Quote from: Husires on July 09, 2020, 07:05:48 AM

Warning using stablecoins is dangerous. The CENTRE Consortium blacklisted a USDC address in response to a law enforcement request, freezing $100,000 worth of the stablecoin.
What happens when an address is frozen/blacklisted: it cannot receive USDC anymore and all USDC controlled by that address is blocked and cannot be transferred on-chain

This is why centralized tokens are not money. And this is why opaque ledger cryptocurencies matters. If Eteherum would not be transparent ledger cryptocurency then no one would know where this tokens are located and blacklisting wallets would be totally useless. Money have to be fungible to be perfect money!!!

jacafbiz

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The way CoinBase and co is going about things is going to hurt the company and the space. This just shows that people will need to think twice before touching their tokens and even using their exchange. I still feel that privacy coins are greatly undervalued in the space, with more microscope being on the space now their would be great demand for them

Festac

member

Activity: 210

Merit: 10

Quote from: bitbollo on July 10, 2020, 02:57:30 AM

it's not just a matter of being victim of a scam. when you accept their TOS (Terms of Subscription) and start using their coin you're accepting their rules. Has anyone ever read it before blaming them? Stable coins are not crypto coins! You're assuming a double risk, first using "FIAT" cash (inflation!) secondly using a coin that implies some rules/obligations !

Stable coins that are centralized are better, honestly this is the best way to avoid embezzlement and some illegal money in crypto space, the best way to stop scam and hackers in crypto space is going centralized, decentralized is freedom for criminals

pawanjain

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Nothing lasts forever

There are two things that I want to highlight here and those are decentralization or regulation.
Wallets getting frozen clearly means that the coin is completely centralized but it also helps the user to report any theft or scams since the wallet provider will be able to freeze the funds as in the above case.

If people want to stop theft and scam then they will have to go for centralized coins where a centralized entity will have the ability to access your funds but the same would also ensure that better regulation can be in place.

If people want decentralization then they will have to deal with the scams and theft because they will be the ones responsible for it.

Kotone

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Activity: 1372

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Obviously they will not frozen the account without valid point. Since the user have been proven to be scammer then its their right as a legit platform to locked his account. Its not like they are doing this on their own and if they pick your account to lock. But this case will mark a big issue on the market that stablecoins are not safe to use with. They should release a public statement and explanation so they are not be crucified by the crypto community.

shinratensei_

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Quote from: Miaallen on July 10, 2020, 09:10:27 PM

I doubt this happens without the owner of the wallet flouting some rules or involved in an illegality. We know series of fraud are taking place with the use of cryptocurrency, the wallet owner might have been flagged up for involving in fraud.

the owner of the wallet was a scammer and it has already verified by some people. I guess those who have been scammed by him already taken legal action and centre was only doing it caused by that.
It's good if the scammer can't take that amount.

Miaallen

member

Activity: 573

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I doubt this happens without the owner of the wallet flouting some rules or involved in an illegality. We know series of fraud are taking place with the use of cryptocurrency, the wallet owner might have been flagged up for involving in fraud.

irixo10

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Who knows what happened and if what really happened was enough reason to freeze such amount, this is where issues of centralization hits the bone, had it been the funds were in Decentralized coins it would have been better. I'm not standing with nor supporting wrongdoings but at least enough reasons should have been given as to why such happened. Also with this act many people will start being careful of stablecoins especially the centralized types as it has exposes the fact that by request from the government your asset can be locked.

CuriousGeorge

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KUWA.ai

Quote from: miklesm on July 10, 2020, 04:05:29 AM

The freeze option is the main reason we should stop using centralized stablecoins. Your funds are never safe, even when holding funds on a cold wallet. It is better to use DAI which is completely decentralized.

You should understand why some centralized coins have implemented this ability caused by there were so many hacked cases and then this ability can help the victim of these hacked cases to get back their money. This is also to comply with the regulation. Just leave it if you didn't like it

Krislaw

sr. member

Activity: 1204

Merit: 388

I guess the reason for the freezing was because the terms and conditions was not complied with. Which brings us to the reason why it's good to go through terms and conditions of whatever we're signing up for.

In this though, the fund might be from a scam, Which made it to get frozen. There is a valid reason because this doesn't happen. Reports like this is rare.

DarkDays

legendary

Activity: 2030

Merit: 1189

Useful information, never considered the fact that the protocol owner could simply freeze and reclaim funds whenever they want.

Although this is a useful process when complying with law enforcement, it's definitely not something that the coin holders want to have looming over them.

I wonder how it would work at exchange platforms, since they usually use pooled wallets. Would the exchange take the hit? I don't imagine many have mechanisms in place to detect when an address has been frozen out, while some allow instant off-chain trades between crypto assets.

Seems like an imperfect solution.

In any case, DAI is looking a lot more appealing now.

miklesm

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The freeze option is the main reason we should stop using centralized stablecoins. Your funds are never safe, even when holding funds on a cold wallet. It is better to use DAI which is completely decentralized.

bitbollo

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it's not just a matter of being victim of a scam. when you accept their TOS (Terms of Subscription) and start using their coin you're accepting their rules. Has anyone ever read it before blaming them? Stable coins are not crypto coins! You're assuming a double risk, first using "FIAT" cash (inflation!) secondly using a coin that implies some rules/obligations !

alicea

hero member

Activity: 1050

Merit: 501

That's the reason I like DAI the most only sad thing is that not many exchanges have DAI listed.

I really think there might be some big reason for them to freeze that address we can't be sure unless the reason is revealed.

Rodeo02

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Quote from: Nhor1011 on July 09, 2020, 11:59:16 AM

Quote from: Ryushin on July 09, 2020, 11:36:14 AM

Don't judge on this yet, I suspect that address owner stole that money, it's better for centralized power to deal with criminals, if it's on decentralized projects the criminal will escape with that money, if this is what happened I'm glad the money is frozen

I agree with you. They don't freeze the owner wallet without heavy reason.Who know's that is a scammer and he stole that big amount of money from someone or maybe he is a wise hacker. We don't really know the exact reason behind it so,let's wait another news regarding this matter and don't jump into conclusion.

if its came from scammer address its deserve to be freeze and cannot use the balance of the wallet he have.

Just think about the victim of the scam, as long as it's a valid reasons I don't think its bad to block the address so scammers cannot use the balance they stole from people.

If you plan to use scam money stable coin is not for you find different coins that they can't block the address or balance in it use monero or different private coins.

jrrsparkles

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Quote from: Husires on July 09, 2020, 07:05:48 AM

This incident confirms the limits of decentralization when it is sent or received by stablecoins especially USDC. where normally funds are under user control, in order to remain compliant CENTRE wields the power to sanction certain accounts.

Every centralized coin can freeze the user funds no matter either it is stable or volatile, but decentralization has nothing to do with this activity the user has been blacklisted for violating some laws in that country so every stable coin user need to be aware of this.Your funds can be frozen for any reason even without your permission.

Topic: Warning <$100,000 worth of the stablecoin were frozen in the wallet> (Read 336 times)