Tether Cuts Off $39 Million in USDT Linked to Sanctioned Escrow Platform
Tether has frozen $39 million in USDT tied to Xinbi, a Telegram-based escrow platform accused of facilitating illicit cryptocurrency activity. The freeze was confirmed by blockchain analytics firm MistTrack and is the latest example of Tether's ability to blacklist wallet addresses at will.
Xinbi has been sanctioned by the UK over allegations it connected merchants with services linked to scams and money laundering, but it reportedly continued operating through alternative channels after the sanctions were imposed.
The freeze marks another instance in which Tether targets entire networks associated with underground marketplaces rather than isolated bad actors, following a similar precedent set when Tether froze wallets linked to Huione Guarantee.