Breaking: Tether Freezes USDT Assets Belonging To FTX Amid Probe

Tether Freeze FTX USDT Assets: In a sudden development, Tether said it froze 46 million of USDT belonging to troubled crypto exchange FTX. A Tether representative reportedly said the USDT froze was effected following a request from law enforcement authorities. The FTX exchange is staring at insolvency after Binance CEO CZ pulled out of the acquisition deal. Meanwhile, crypto prices continue to plummet deeper as uncertainty around the Sam Bankman-Fried crypto empire drags on.

SEC Probe In Context Of FTX Meltdown

On the other side, the US SEC is currently probing the manner in which FTX US handled its customer funds. In a latest development, SEC chair Gary Gensler said there was a need for investor protection in the crypto industry. However, he said it is taking time to establish evidence as crypto companies transact with each other. Gensler made the comments on Thursday speaking to CNBC.

A Coindesk report quoted a Tether executive as saying,

“We are starting to receive requests from law enforcement to temporarily freeze assets while investigation occur.”

Restrictions On FTX Japan

In a latest, the Japan arm of FTX was instructed to stop operations by the country’s Financial Services Agency. The authorities also ordered to stop onboarding new clients until December 9, 2022. The regulatory agency stated that it is currently not sure of FTX Japan’s state of financial health. They also sought in writing a plan for improving the situation that could resolve all issues.

Earlier, Binance cited mismanagement of user funds and ongoing investigations as a reason for pulling out of the FTX deal. Meanwhile, Tether (USDT) price raised concerns after it lost its peg with the $1 value. At one point, USDT price stood at $0.982 but it soon recovered to nearly $1. As of writing the USDT stablecoin price stands at $0.9976, down 0.13% in the last 24 hours, according to price tracking platform CoinMarketCap.