A Wallet Address with $100,000 USDC has been Frozen by USDC Issuer

News • 2020/07/09 • by Remitano

Stablecoins have been criticized for their single point of failure. Many companies like Tether (USDT issuer), Centre (USDC), or TrustToken (TUSD) have been criticized for their dependency on the central governments. This narrative suddenly becomes a hot topic again after recently Centre (the issuer of USDC) has decided to freeze a wallet address with $100,000 worth of USDC tokens.

Centre claimed that this address has been blacklisted due to an inquiry from law enforcement. Considering Centre wants to comply as much as it can with the authorities, it had no choice but to follow the inquiry. There’s no obvious reason given behind the blacklisting but some crypto media hinted that this address was associated with various crypto scams.

You might be wondering how Centre could blacklist an Ethereum wallet address. Well, Centre created the USDC smart contract where it could restrict wallet addresses from sending or receiving USDC tokens.

This news has become a hot topic among the crypto community as many people believe that USDC is centralized and shouldn’t be promoted in the crypto space where the ideology is about censorship-resistance and also about breaking away from central governments.