USDT Risks for Russian Holders Amid External Control Concerns

The stablecoin USDT has been flagged for potential risks for Russian holders following statements from Petr Fradkov, head of PSB, a key bank in Russia's military-industrial complex.

Fradkov emphasized that USDT holders should not consider this instrument completely independent from external control. The issuing company can freeze funds in accounts if it deems necessary, and such decisions may be made not only regarding wallets linked to illegal activity or money laundering but also by order of the U.S. administration.

Tether Limited, which issues USDT, is among the major holders of U.S. Treasury bonds, demonstrating the vulnerability of the stablecoin: the cryptocurrency operates via blockchain and every transaction is recorded in the digital environment, but the asset in the owner's accounting still depends on the rules and decisions of the issuer.