THORChain Vaults Temporarily Frozen by Tether

Stablecoin issuer Tether temporarily blacklisted USDt (USDT) vaults belonging to the THORChain network, according to technical co-founder Chad Barraford. The action affected approximately 1.45 million USDT in network funds distributed across four wallets.

In a post on X, Barraford stated that the addresses were frozen without prior communication or explanation from Tether. Approximately two hours after the initial restriction, the stablecoin issuer unfroze all four addresses, allowing trading activity to resume.

Lack of Communication

Before the addresses were restored, Barraford noted that the network had reached out to initiate a conversation regarding the decision. "We don’t know why this choice was made and have had no comms with USDT before this action and are actively reaching out to have a conversation," Barraford said. He added that the team hoped the action was the result of an error or misunderstanding.

According to Cointelegraph, representatives for Tether and THORChain did not immediately respond to requests for details concerning the incident.

Recent Legal Scrutiny

The temporary freeze follows a series of legal actions involving Tether's freezing mechanisms. Earlier in the week, cross-border payments platform Conduit Technology filed a lawsuit against Tether over the freezing of $2.76 million in USDt connected to an investigation by Brazilian authorities. Additionally, two Thai nationals filed a lawsuit in August alleging the company froze $42.4 million following a request from US Homeland Security Investigations.

Key facts

• Tether temporarily blacklisted four THORChain USDt vaults holding roughly 1.45 million USDT.
• Technical co-founder Chad Barraford reported the restriction and subsequent unfreezing on X.
• Trading on the network resumed about two hours after the addresses were unlocked.
• Representatives for Tether and THORChain did not immediately respond to requests for comment.