Tether is certainly able to control your USDT if necessary. The company can freeze, destroy, or even reverse USDT transactions and funds at will. This comes from a recent report published by The Block that explains how the company behind the largest stablecoin can easily control the coins in circulation.
Tether can roll back transactions
A few days ago, a user sent USDT worth $ 1 million to a DeFi platform called Swerve. However, the user lost access to the money and started asking for help in getting the money back. Tether CEO Paolo Ardoino was able to easily reverse the transaction using smart contracts.
Although Tether cannot move USDT from anyone else, they can freeze, destroy, issue, and send tokens. This way they can control the delivery of the largest stablecoin in the world.
The surprising thing is that this isn’t the first time Tether has been helping users reclaim funds. Last week it helped 12 users get their money back. Around $ 5 million USDT was reclaimed that year, showing that Tether has a lot of power on the network and can certainly control the supply and the coins put on the market.
Stablecoins have become hugely popular in recent years as they can help users maintain their fiat value digitally without relying on centralized financial firms like banks and other businesses. In addition, these stablecoins can be used for many things including payments, transactions, and even participating in the DeFi market.
The report explains that other stablecoins like Gemini USD (GUSD) or USD Coin (USDC) can also control users’ funds. You may have a harder time than tether, however. Meanwhile, TrueUSD (TUSD) can also freeze users’ funds.
These features, which we find in stablecoins, are designed to help businesses comply with financial regulators around the world and also to meet law enforcement requests. Given that the companies behind these stablecoins must comply with the authorities, they must have the ability to control the funds they spend and release in the market.
It’s worth noting that Tether has been accused several times of boosting the cryptocurrency market. Analysts John Griffin and Amin Shams stated that Tether could have been used Stabilize and manipulate the price of Bitcoin in difficult times for the largest virtual currency.