USDT Holders in Russia Face Risk from Centralized Control

The stablecoin USDT may be at risk for Russian holders due to its centralized nature and control by Tether Limited. According to Petr Fradkov, head of PSB, a key bank for Russia's military-industrial complex, USDT holders should not consider this instrument completely independent from external control.

Fradkov emphasized that access restrictions are possible not only regarding wallets linked to illegal activity or money laundering but also by direct order from the U.S. administration. He cited precedents where large assets of owners from Iran and Russia have been frozen.

Tether Limited's dependence on the U.S. market is a concern, as it holds significant amounts of U.S. Treasury bonds. This means that even digital instruments like USDT may operate via blockchain but still depend on the issuer's decisions, including freezing assets.