Tether Freezes $37 Million USDT at Government’s Request

The Nigerian government has requested Tether to freeze four addresses containing $37 million USDT. The Economic and Financial Crimes Commission (EFCC) claims the cryptocurrency is linked to money laundering and terrorism financing.

“The honorable court issues an order to freeze the wallet addresses/accounts listed below, which are owned by individuals currently under investigation for money laundering and terrorism financing, pending the conclusion of the investigation.”

There are suspicions that the freeze is related to the #EndBadGovernance protests in the country. The protests were motivated by rising living costs and calls to end the mismanagement by the government of this African nation.

This action highlights the centralized nature of stablecoins like USDT. Unlike decentralized cryptocurrencies, USDT can be easily frozen by Tether Limited at the request of governments.

Sentiment: Neutral