Crypto pundit Star has highlighted that crypto decentralization is a myth, noting that crypto networks and firms can freeze funds. The pundit specifically alluded to the Tether freeze and Arbitrum’s move to freeze the crypto assets stolen by the Kelp DAO exploiter. Pundit Highlights Crypto Decentralization Myth In an X post, Star stated that centralization has been exposed inside TRON USDT. The pundit noted that Tether just executed the largest freeze in its history, freezing $344 million USDT, which it carried out in coordination with OFAC and the U.S. law enforcement. This was executed directly through the USDT smart contract, with the funds visible but completely unusable. Related Reading: What The Kelp DAO’s $292 Million Hack Means For XRP Holders Earning Yield Further commenting on how it works, Star explained that Tether has admin control over USDT contracts, which proves that crypto decentralization is a myth. The pundit added that this admin control enables the USDT issuer to blacklist any address, freeze balances instantly, and permanently destroy funds. It is worth noting that Tether had confirmed the freeze, stating that it supported the U.S. government in freezing $344 million USDT across two addresses, which were on the TRON network. The firm added that the freeze was executed after the addresses were identified, preventing further movement of funds. A CNN report confirmed that the U.S. government directed the freeze of these USDT funds because they are linked to Iran. Iran had notably opted against stablecoins in favor of Bitcoin for toll payments at the Strait of Hormuz over fears of seizure, further highlighting the myth around crypto decentralization. Meanwhile, Star pointed out that the Tether freeze on TRON came just days after the network’s founder, Justin Sun, said that TRON is the most decentralized blockchain in the world after the Arbitrum incident. Sun has yet to comment on the Tether freeze on the TRON network, which occurred earlier this week. The Arbitrum Incident Also Raises Concerns Star also cited the Arbitrum incident to highlight that crypto decentralization is a myth. Earlier this week, Arbitrum announced that the network’s Security Council had taken emergency action to freeze the 30,766 ETH being held in the Arbitrum address that is connected to the Kelp DAO exploiter. Related Reading: Remember Arbitrum? This Analyst Just Predicted That A 7,400% Rally Is Coming The network stated that the Security Council acted with input from law enforcement regarding the exploiter’s identity. It is worth noting that the Kelp DAO exploiter had stolen up to $292 million in staked ETH from the Kelp DAO bridge last weekend. Meanwhile, Arbitrum’s decision to freeze this ETH drew mixed reactions. Crypto pundit Pledditor noted that Arbitrum, which has regularly received praise from Vitalik Buterin as the most decentralized Layer-2, has just frozen funds. On the other hand, Helius CEO Mert praised the move, noting that Arbitrum having the means of control and refusing to use it to appease the exploiters would be a “much worse and dishonorable outcome.” Featured image from Pxfuel, chart from Tradingview.com
Over 500 "fraudulent web domains used to perpetuate cryptocurrency investment fraud" were also seized, OFAC said.
Tether says it froze $344 million in USDT on Tron in coordination with OFAC and U.S. law enforcement, one of the largest freezes on record.
The Treasury Department said North Korea infiltrated IT workers into U.S. businesses and channeled their wages back to the country to fund weapons of mass destruction programs.
U.S Treasury sanctioned DPRK IT facilitators linked to crypto laundering networks that generated nearly $800 million for Pyongyang in 2024.
The US Treasury Department’s Office of Foreign Assets Control (OFAC) has sanctioned two Iranian nationals accused of orchestrating crypto transactions to help Tehran sell oil in defiance of international restrictions. On Sept. 16, OFAC named Alireza Derakhshan and Arash Estaki Alivand as central figures in a network that moved more than $100 million worth of […]
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U.S. officials accused Garantex, Grinex, A7A5 token issuers and executives of laundering ransomware proceeds and evading sanctions.
The U.S. Treasury Department added the employee of a North Korean hacking group to its blacklist over his role in getting IT workers jobs in other countries.
A bulletproof hosting service provides servers that bypass law enforcement and cybersecurity organizations.
According to OFAC, Funnull Technology Inc. provides computer infrastructure for “hundreds of thousands” of pig butchering websites.
The wallets received payments directly from Huione Pay, a subsidiary of Huione Group.
TORN, the native token of privacy protocol Tornado Cash, has rallied over 70% following its removal from the US sanctions list. The Office of Foreign Assets Control (OFAC) confirmed on March 21 that it had delisted several Ethereum wallet addresses tied to the protocol. This marked a significant milestone for the embattled decentralized platform, which […]
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Tornado Cash was sanctioned multiple times over allegations of helping Lazarus Group launder funds.
Besciokov is charged with money laundering conspiracy, conspiracy to violate sanctions and conspiracy to operate an unlicensed money transmitting business.
Garantex was sanctioned in 2022 for facilitating money laundering for ransomware actors and darknet markets.
The US Department of the Treasury has imposed sanctions on Behrouz Parsarad, an Iranian national accused of managing the now-defunct Nemesis darknet marketplace. As part of the action, authorities blacklisted 49 Bitcoin (BTC) and Monero (XMR) addresses linked to him. The Office of Foreign Assets Control (OFAC) announced the sanctions on March 4, stating that […]
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The US District Court for the Western District of Texas has overturned the sanctions imposed by the US Treasury’s Office of Foreign Assets Control (OFAC) on crypto-mixing protocol Tornado Cash. A Jan. 21 filing from the Fifth Circuit Court of Appeals ordered OFAC to remove Tornado Cash-linked addresses from its Specially Designated Nationals and Blocked […]
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OFAC says a front company in the UAE had been converting crypto into cash for North Korea.
Ethereum block builders Beaverbuild and Titan Builder have made around 88% of the blockchain’s blocks in recent weeks, and now BuilderNet aims to disrupt that.
A US appeals court ruled the Treasury’s OFAC “overstepped” when it sanctioned crypto mixer Tornado Cash’s smart contracts.
The Coin Center lawsuit, first filed in 2022, noted that one plaintiff used Tornado Cash to protect his identity while donating money.
Two crypto exchanges and two individuals have been sanctioned for ties to underground finance.
Last October, the Financial Crimes Enforcement Network (FinCEN) – the U.S. Treasury Department's money laundering watchdog – announced a proposal to label crypto mixers as a "primary money laundering" concern, a move that alarmed a broad swath of the crypto industry. Treasury Under Secretary for Terrorism and Financial Intelligence Brian Nelson addressed this move and more at CoinDesk's Consensus 2024 last month in Austin, Texas on stage. The following transcript has been lightly edited (and the bulk of my questions have been slimmed down to their gist).
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced a new round of sanctions on crypto-related companies linked to Russia. The measure is part of the US government’s efforts to combat OFAC-designated entities from evading sanctions through virtual asset services. Related Reading: Rumors Swirl As North Korea’s ETH Transfer To BlackRock […]
The U.S. government tagged a number of bitcoin and ether addresses as being tied to the LockBit ransomware group, which was taken down on Monday.
The U.S. and other governments are adding a number of Hamas-affiliated financiers to a global financial blacklist, the Treasury Department's sanctions watchdog announced Monday.