Stablecoin or CBDC? Tether’s latest freeze adds fuel to decentralization debate

Key Points

1. Tether froze $85,877 in USDt tied to stolen funds, collaborating with law enforcement, adding to its record of freezing over $2.5 billion in illicit-linked USDt and blocking 2,090+ wallets.

2. Tether's actions, including freezing $225 million in 2023 and $700 million in 2025, highlight its role as a compliance enforcer in the crypto space.

3. CEO Paolo Ardoino emphasized Tether's ability to track and freeze illicit transactions, working closely with global law enforcement agencies.

4. Critics argue Tether's centralized control mirrors CBDCs, undermining crypto's decentralization values, with users calling it a 'slippery slope'.

5. The debate contrasts Tether's enforcement power with decentralized networks like Bitcoin and Ethereum, where no single entity can block transactions.