Tether confirms help to government to block $6 million in USDT

[rdluffy]

Source


I saw this news and we all know that Tether is following the line of helping governments to stay out of trouble.
What do you think? is Tether's attitude right? Do you trust USDT to hold dollars?

[Zed0X]

Right on the scam victim's point of view. Other than them, there will be people that would appreciate what Tether did until it happens to their own USDT. Centralized exchanges refusing your withdrawal is already bad enough, how much more if you can't use it at all?

[Dr.Bitcoin_Strange]

Tether has done well through their assistance in making sure that the funds was recovered. It is a good one in such kinds of situation but we should also known that for any reason that tether find to be concerning, they can freeze any body's asset in their wallet, including me and you.  That's the disadvantage of centralized crypto.

[electronicash]

Right on the scam victim's point of view. Other than them, there will be people that would appreciate what Tether did until it happens to their own USDT. Centralized exchanges refusing your withdrawal is already bad enough, how much more if you can't use it at all?

exactly.  this is justified in a sense but on the other hand, people should also look at how they could use this power to freeze and block your money when they make a platform obey on orders. and this has been the reason for other countries to circulate to have economic freedom or in the case of people who have been speaking against the government, the term would be financial freedom.

this is why there should be  platform where anyone is allowed and politically not involved or just independent to influence.

[Captain Corporate]

Hence why we shouldn't really have any money at all in USDT ever, no idea how they even do this and how it could even work out. This isn't a decentralized one, and we have seen this become something that is not acceptable and because of this we are not going to end up with a great return. Forget about it and never consider holding any at all. People are looking into USDT differently thankfully, we have seen it reach a point where people can't really consider this acceptable. This should be something we need to get away from as much as we need to, it will definitely get much better with decentralized options.

[Jating]

I do not think that they have any other options though, I mean if they didn't help the government, then obviously they will be the on going to be attack in my opinion.

Although for me it won't change anything, I mean some of us might feel that this move is still not enough to proved that Tether still runs on fractional reserves similar to banks or the way they didn't cooperate with the government earlier when they are under scrutiny and doesn't want to be audited.

[TomPluz]

Are we to expect Tether not to cooperate with the government on any matter when it is a very centralized platform hence has to act according to what the government expects it to? Tether is doing business and it would be a nightmare for it to fight the government for any reason. On the ground of a scam, I would surely understand and would even prod other platforms to help the government run after the bad actors so we can help the industry get cleaner as it has been the paradise island of many scammers and fraudsters worldwide. However, there is one thing we should demand and that is transparency all the time. Good thing that Tether is sharing to the community on this matter and this could even be a strong message to scammers everywhere that what they are doing will not be tolerated.

[target]

Are we to expect Tether not to cooperate with the government on any matter when it is a very centralized platform hence has to act according to what the government expects it to? Tether is doing business and it would be a nightmare for it to fight the government for any reason. On the ground of a scam, I would surely understand and would even prod other platforms to help the government run after the bad actors so we can help the industry get cleaner as it has been the paradise island of many scammers and fraudsters worldwide. However, there is one thing we should demand and that is transparency all the time. Good thing that Tether is sharing to the community on this matter and this could even be a strong message to scammers everywhere that what they are doing will not be tolerated.

This is a threat to everyone who will be using USDT however. They will be confiscating their money in the case of uncertainty. Let's say a war breaks while USDT is being used to fund everywhere, there will be a chance that they freeze every accounts sending USDT especially if they suspect it's sending somewhere in the war zone.

While they may see it reasonable, a family trying to survive may died of hunger instead because of freezing stable coins.

[rdluffy]

This is a threat to everyone who will be using USDT however. They will be confiscating their money in the case of uncertainty. Let's say a war breaks while USDT is being used to fund everywhere, there will be a chance that they freeze every accounts sending USDT especially if they suspect it's sending somewhere in the war zone.

While they may see it reasonable, a family trying to survive may died of hunger instead because of freezing stable coins.

there are always two sides to consider
I too am very divided. I agree with Tether helping to fight scams, they have already managed to recover funds from victims, and I would like help too if I had lost my money in a scam
But the downside is that if one day your country has a serious problem and funds are frozen, it could be a nightmare. Or you get coins that could be confiscated after a while for some reason... it's quite complicated.

[yhiaali3]

Of course I wouldn’t trust USDT to hold my assets, we all know that no one actually owns USDT, but Tether, unfortunately Tether has turned into a money-collecting company for the US government.

What’s worse is that these practices go beyond the borders of the United States, as I read in the news that:

Tether recently assisted the US Department of Justice (DOJ) in seizing over $6 million tied to a Southeast Asian crypto-confidence scheme.

what does the US have to do with seizing money from users’ wallets in Southeast Asia? Has the US become the world’s policeman and Tether its assistant?

[NotATether]

"Crypto-confidence scheme" sounds to me like the classic investment scam, where the user wires a transfer to a bank account and the scammers convert the balance to USDT.

Of course Tether had to get involved here, because it was legally required to, but I can't help but think why don't these dimwits use a more censorship-resistant cryptocurrency for payouts like BTC or XMR.

(don't get me wrong though, I am happy that their lunacy leaves them out of pocket)

[Z-tight]

Tether can confiscate your coins at anytime, even if you store it in your own wallet, a lot of us have known this for a very long time. Do i like that? NO, but it is hard to say it out loud since they just recovered stolen funds. I do not recommend one to hold usdt for a long time, i feel safer when i know no entity can confiscate my BTC which is in my self custodial wallet.

[God Of Thunder]

I saw this news and we all know that Tether is following the line of helping governments to stay out of trouble.
What do you think? is Tether's attitude right? Do you trust USDT to hold dollars?

Previously, we heard that centralized exchanges may freeze your account and balance to help the government and authorities. But, when it is the crypto currency like Tether, then this is time to rethink about holding USDT. I should have control of my own money and not the creator of a token. Bitcoin is the greatest example. No one can freeze your balance if you are using a non-custodial wallet.

So, what is the alternative of USDT? I am not sure if they are going to do that because the government creating pressure like what they did with Pavel Durov in France. Usually I do not hold USDT. But sometimes I keep some USDT on centralized exchanges to make some purchase sometimes. I do not consider it as holding because it's already out of my control when I keep it on a centralized exchange.

[NotATether]

Previously, we heard that centralized exchanges may freeze your account and balance to help the government and authorities. But, when it is the crypto currency like Tether, then this is time to rethink about holding USDT. I should have control of my own money and not the creator of a token. Bitcoin is the greatest example. No one can freeze your balance if you are using a non-custodial wallet.

Exchanges are supposed to freeze coins even more than Tether when there is an ongoing investigation, but most people have trouble making exchanges even listen to their please. I certainly do not mind if they become like (the hated) Paypal in this regard, but it turns out that most of these exchanges are just incompetent.

So, what is the alternative of USDT? I am not sure if they are going to do that because the government creating pressure like what they did with Pavel Durov in France. Usually I do not hold USDT. But sometimes I keep some USDT on centralized exchanges to make some purchase sometimes. I do not consider it as holding because it's already out of my control when I keep it on a centralized exchange.

DAI is like USDT but it is decentralized and cannot be frozen. It runs on Ethereum's network. I'm not sure if there is such thing as DAI-TRC20, DAI-BEP20 and so on.

(Also, this reminds me of BRC-20, which was supposed to be like this. Who even uses that anymore? Lol.)

[God Of Thunder]

DAI is like USDT but it is decentralized and cannot be frozen. It runs on Ethereum's network. I'm not sure if there is such thing as DAI-TRC20, DAI-BEP20 and so on.

(Also, this reminds me of BRC-20, which was supposed to be like this. Who even uses that anymore? Lol.)

I know about DAI but I didn't know if it is really decentralized. Since it is running on ETH network, yes, the main chain is ERC-20. But I just checked coinmarketcap and found that DAI is available on 24 more blockchains which means yes, there are things like TRC-20, BEP20 and many more. But the ETH chain is the main chain for DAI which makes me to think about the transaction fees.

I remember I didn't like ETH because of the transaction fees. If someone use DAI on a wallet like Metamask, they have to keep ETH or BNB to pay fees for their DAI Transaction. But, the main problem is transaction fees on ETH main net. ETH transaction fees sucks. Sometimes you have to pay $10 fees to send a $5 transaction.

Also, I figured out DAI was at 0.96 at some point in 2020. Not sure if it was because of the multiple chain issues or if it was de-pegged.