Tether Freezes FTX's $46.3M in USDT Due to Ongoing Investigation
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Nov. 10, 2022

Tether Inc, the issuer of the US dollar-backed stablecoin USDT, has blocked $46.3 million in the stablecoin on the TRON network owned by troubled cryptocurrency exchange FTX, tweeted Whale Alert.

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A spokesperson for Tether told media the company has blocked FTX's wallet as the company has started to receive requests from law enforcement to "temporarily freeze assets while investigation occur." Tether didn't detail which agency requested it to freeze the assets though.

The move comes amid reports that the SEC and the CFTC are looking into FTX's relationships with Alameda Research, a trading firm also founded by the exchange's head Sam Bankman-Fried. However, the financial regulators made no public accusations against FTX of any wrongdoing.

Sequoia Capital Claims the FTX Collapse Has Not Affected the Company

In the meantime, FTX is trying to stay afloat after Binance said it would not pursue its acquisition plans of the exchange due to mishandled customer funds and alleged US agency investigations. As per reports, FTX is seeking emergency raising due to a shortfall of up to $8 billion triggered by massive withdrawals.

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