Chad Barraford, the network’s technical co-founder, stated that the assets were blocked and subsequently released with zero rationale provided.
THORChain technical co-founder Chad Barraford blamed stablecoin creator Tether for blocking the platform’s USDt (USDT) vaults without providing any reasoning, only to lift the freeze hours later.
Via a Friday post on X, Barraford revealed that Tether blocked THORChain vault wallets, locking approximately 1.45 million USDT in total protocol reserves spread over four addresses. Roughly two hours afterward, he stated that swaps would recommence after the organization removed the restrictions on every wallet.
“We are unaware of why this decision occurred and experienced zero communication with USDT prior to this event, and we are actively trying to initiate a dialogue,” expressed Barraford prior to the lifting of the freeze. “We trust that this took place due to an error or a misunderstanding.”
Cointelegraph contacted both Tether and THORChain for further information regarding the event, though no prompt reply was given.
Earlier in the week, cross-border settlement network Conduit Technology initiated legal action against Tether, claiming that the stablecoin issuer locked 2.76 million dollars worth of USDt within a wallet linked to a probe initiated by Brazilian officials in 2024. Furthermore, two citizens of Thailand took legal action against the stablecoin issuer during August over the claimed freezing of 42.4 million dollars in USDt following a purported informal inquiry from US Homeland Security Investigations.
Related: Cantor Fitzgerald confronts inquiries from Senate Democrats regarding Tether connections
Originally published at https://cointelegraph.com/news/thorchain-tether-freezing-usdt-addresses?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound.
