USDT Holders Face Risk of Asset Freeze Due to U.S. Decision

Russian officials have warned citizens that their USDT cryptocurrency assets may be frozen due to a decision by the U.S. administration, according to Petr Fradkov, head of Russia's Promsvyazbank (PSB). The PSB is one of the key banks for Russia's military-industrial complex.

Fradkov stated that USDT holders should not consider this instrument completely independent from external control because the issuing company can freeze funds in accounts if it deems necessary. He emphasized that such decisions may be made not only regarding wallets linked to illegal activity, money laundering, or bypassing 'Know Your Customer' procedures.

According to Fradkov, access restrictions are also possible simply by order of the U.S. administration. Precedents for this already exist, with large assets of owners from Iran and Russia having been frozen in recent years.