Cryptocurrency

An address with 100 thousand USDCoin was frozen by court order


Key facts:

The company issuing USDCoin said that it will comply with the provisions of the Justice.

Other stablecoins, as a Tether, Gemini Dollar and PAX, they can also be frozen by their issuers.

Centre, the consortium responsible for the development and issuance of the stablecoin USDCoin (USDC), which maintains parity with the u.s. dollar, froze a direction that is nearly 100 thousand units of this criptomoneda.

The measurement was taken at the request of the Justice and, because of this, his owner no longer can send or receive funds with that address. In the explorer, blockchain Etherscan you can see that the function “blacklist(address investor)” was executed on June 16 for an address ownership of the Centre.

The company, founded by Circle and Coinbase, in a statement to the press explained that it could not provide details about the reason of the judicial order. But he made clear that the Centre is willing to comply with the provisions issued by the judiciary in its jurisdiction.

The respect is expressed the maximalist Italian Bitcoin, Giacomo Zucco, who said ironically be surprised by the fact. For him, the stablecoins centralized, issued by a so-called “legal entities super-regulated” and incorporated in the united States, are similar to Paypal.

What happened should not cause surprise to anyone, because the own guidelines of the user agreement, USDC explicitly indicate that the Centre reserves the right to include certain addresses in a black list, in addition to being able to freeze or seize funds.

As had been reported Breaking News, the criteria for being included in a black list, in addition to court orders, may be suspected of involvement in illegal activities or violations of the rules of use of the criptomoneda.

This is the first time that a direction of USDC is vetoed, although it had already happened the same with addresses of other stablecoins. For example, up to the moment there are 39 addresses Tether (USDT) in this same situation.

Also, among others, the stablecoins Gemini Dollar (USDG), of the company’s Gemini and PAX, Paxos Standard, are liable to be frozen in a centralized way. In this latter case, the agreement even states that the issuing company may, if necessary, to erase the balance of an address in order to enable the authorities to seize the assets back.

Apologists of other stablecoins decentralized used these cases to argue in favor of their crypto assets favorites. In the world Spanish-speaking world stands out for its conviction user @Crypto_Patoruzu who wrote on his Twitter account: “Wear DAI, because DAI is decentralized, nobody can take it away, no one can ban, restrict or close the account.” Although not mentioned in this tweet that one of the cryptocurrencies that function as collateral for DAI is, precisely, USDC.

About the author

Belinda Carey

Belinda Carey

A finance girl by education, Belinda has been drawn to cryptocurrencies ever since Bitcoin first emerged in the 2009. Nearly a decade later, Belinda is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies.

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