THORCHAIN VAULTS AFTER HALTING TRADING
Tether has reversed its decision to blacklist four THORChain USDT vaults on the Tron blockchain, approximately three hours after freezing $1.45 million in assets.
The affected vaults reportedly held 93% of THORChain’s Tron-based USDT liquidity, forcing the protocol to suspend trading, transaction signing and liquidity-provider operations.
THORChain co-founder Chad Barraford said the protocol received no warning or explanation from Tether before the freeze.
The four addresses were subsequently removed from the blacklist, allowing Tron trading and related operations to resume.
However, 19 other addresses reportedly blacklisted during the same operation remained frozen.
The incident comes amid heightened scrutiny of Tether’s ability to freeze assets across decentralized financial infrastructure.
THORChain facilitates native Bitcoin swaps without requiring users to wrap BTC or transfer custody to a centralized exchange.
While THORChain’s validators collectively control its vaults, they cannot override restrictions imposed by centralized token issuers.
The reason for Tether’s initial action remains unclear.
Tether has reversed its decision to blacklist four THORChain USDT vaults on the Tron blockchain, approximately three hours after freezing $1.45 million in assets.
The affected vaults reportedly held 93% of THORChain’s Tron-based USDT liquidity, forcing the protocol to suspend trading, transaction signing and liquidity-provider operations.
THORChain co-founder Chad Barraford said the protocol received no warning or explanation from Tether before the freeze.
The four addresses were subsequently removed from the blacklist, allowing Tron trading and related operations to resume.
However, 19 other addresses reportedly blacklisted during the same operation remained frozen.
The incident comes amid heightened scrutiny of Tether’s ability to freeze assets across decentralized financial infrastructure.
THORChain facilitates native Bitcoin swaps without requiring users to wrap BTC or transfer custody to a centralized exchange.
While THORChain’s validators collectively control its vaults, they cannot override restrictions imposed by centralized token issuers.
The reason for Tether’s initial action remains unclear.
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