The largest stablecoin issuer stated that it was required to comply with law enforcement. Tether has become the latest industry company engaged in the ongoing FTX crisis by freezing over 46 million USDT.
According to the company, it was required to cooperate with law enforcement agencies. Since Binance opted to sell its entire FTT hoard because of certain anomalies with Alameda Research’s balance sheet, all eyes in the crypto industry have been on FTX.
The subsequent instability included Binance agreeing to buy FTX and then backing out of the deal. Several authorities and law enforcement agencies have initiated an investigation into the troubled cryptocurrency exchange, which appears to be hurting other industry participants.
Tether, which is built on Tron and is owned by FTX, froze 46.3 million USDT. According to a company spokesman, this decision was made in response to a request from a law enforcement agency. This comes only a day after the stablecoin issuer stated that it had no exposure to FTX or Alameda.
Separately, the TRON DAO Reserve announced plans to buy 300 million USDT before increasing the total to one billion. This comes just hours after the USDT price fell to £0.83. Despite the pricing variations, Tether’s CTO confirmed that the company would continue to redeem at £0.86.