Tether continues its blacklisting – Tether (USDT) is by far the most widely used stablecoin in the ecosystem. Since July, the number of addresses blacklisted by Tether has continued to increase. A direct consequence of bad DeFi practices.
100 addresses blacklists
According to a study conducted by our colleagues at TheBlock Research , the number of addresses blacklisted by Tether (USDT) has 100 . In practice, these can no longer receive, send or exchange USDT. In short, all of their USDT tokens are currently unusable.
Evolution of the number of blacklisted addresses since January 2018 – Source: TheBlock
As we can see in the diagram, 84 of these addresses were blacklisted in 2020 , with more than fifty since July.
Several examples can explain this phenomenon
First, many users have inadvertently sent USDTs to the wrong addresses . This is the case of this Internet user who sent the equivalent of $ 1 million to the SushiSwap smart contract address rather than to the dedicated pools.
Subsequently, we find the addresses that were involved in hacks. This was recently the case with the KuCoin hack, where several million dollars could have been frozen .
Although USDT is often criticized for its centralization, it can be advantageous in the event of a hack or error. Indeed, the Tether company is able to freeze, then return the tokens to their original holders.