Topic: Warning <$100,000 worth of the stablecoin were frozen in the wallet> - page 2. (Read 349 times)

That's why they used to say stablecoins are not even cryptocurrency. If the token are able to freeze any balance, how can they be decentralized. And without decentralization, a cryptocurrency does not serve the purpose.
Without DAI, it seems all the coins can freeze balance. I see a good future of DAI.

The amount is not small it is a big amount that has been frozen. I am sure this address must have been used for some illegal activities or scams. Why will it be frozen by the centralized authority without any reason? Let it be investigated and within a few months we will know what exactly was happening with the sum of Money?

it looks like the amounts that have already blocked related to the illegal activities. circle has already stated if that was can't be unlocked. If that was fully decentralized and the authorities will asked the exchange site to block it. Authorities have a lot of ways to do that.

It's difficult to judge their action since no reason was provided at first. But, I doubt they will freeze a wallet without a valid reason. It might be for compliance, what if the funds from that wallet were stolen funds. As long as there is no suspicious activity, your funds will be safe. However, it is better to be safe than sorry. Just be cautious when using stable coins.

USDC is certainly not decentralized and they are a legit business under the US jurisdiction. They need to comply when the government asks.
It's the same for most of the exchanges and other coins and tokens. Even if it were decentralized coin, the authorities would make it hard for the person to cashout.

It doesn't matter what he did. Maybe he stole it maybe he did not. Was he sentenced? Was there a conviction?

They froze his money without a trial so this shows how dangerous using a stablecoin can be when somebody suspects you of something and you get your money stolen from you which can make you unable to hire a lawyer and defend in court. It can also make you unable to travel to whenever you want to defend your case and so on.

Yes, theres a reason why they frozen the USDC and blacklisted the user wallet address which I'm sure it something that have to do legal issues but I dont the reason why people still make use of centralized fiat backed stablecoins when there's already precious metal backed and decentralized stablecoin.

OP I'm so against hackers and crypto scammers, if that money have something to do with illegal activities then it's good move that the address got frozen, this is why I like centralized projects sometimes, criminals shouldn't be allow to roam free on blockchain space

But the main point here is about the centralized nature of USDC. Now the control is again back with the companies or the issuer of the token and moreover the chances of exit scam also will be increased with newly launched stable coins. This isn't the idea behind the use of cryptocurrencies as they were meant to be decentralized in nature, now what is the difference between the banks freezing the wallets and USDC which also did the same. Now maybe people shouldn't hold their coins in the form of stable coins which I previously used to do.

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.

Same thought.

They wouldn't freeze an address without a valid reason, why would they blacklist that? No random agency would do that. Just like in Binance, whenever there's an address coming from a hacker or stolen funds, they'll blacklist the address so whenever a fund comes to their exchange from that address, they'll freeze it.

It's what I wanted mate, it's what many crypto investors want too I guess, enough of theft and using crypto to get away with crime, I'm sure that money isn't legal, there is more we ain't knowing yet, why do we hope for regulations if it's not to stop all this stealing I'm crypto space? I'm glad USDC make this move

$100,000 is a big money and I am sure this huge amount of money is related to some theft or illegal proceedings. So it's good to have such kind of controls in crypto market. This is the only way we can stop illegal things her. We often hear about million dollar hacks in bitcoin, but we need to realize that the uncontrollable nature of bitcoin is actually fueling such nuisances.

With USDC, there's actually a chance of getting the hacked money back to its lawful owners. That's great for this crypto market filled with thieves and miscreants! I don't see any danger here unless you are doing something illegal!

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 think that was not the whole idea, there must be a specific reason why they block that address and freeze that $100K worth of USDC or maybe there was a compliance issue between the holder of that address and the US legal authorities, Since we are using a US dollar-backed stable coin we must set to comply all of the requirements while holding a US dollar-backed stable coins.

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.

CENTRE, which issues the dollar-pegged USDC on top of the Ethereum blockchain, confirmed the move, though Circle spokesperson Josh Hawkins, speaking on behalf of the joint Circle-Coinbase operation, said he could not provide any specifics about the blacklisting, which appears to have occurred in mid-June.


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.

According to the document, CENTRE will also consider a blacklist “to comply with a law, regulation or legal order from a duly recognized U.S. authorized authority, U.S. court of competent jurisdiction or other governmental authority with jurisdiction over CENTRE.”

Source https://www.coindesk.com/circle-confirms-freezing-100k-in-usdc-at-law-enforcements-request

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The above incident confirms USDC blacklisted address, but he is not the only one:


Tether (USDT) and USD COIN, TRUE USD, AND BUSD (Binance usd) can be frozen/reclaim and they can prevent me from sending and ask for my files they will be of no value.

All of these stablecoins can be blocked at addresses or prevented from sending and receiving money on them.