In an abrupt turn of events, Tether said that it had frozen 46 million Tether (USDT) that belonged to FTX, the failing cryptocurrency exchange.
According to a Tether spokesman, the Tether (USDT) freeze was implemented in response to a request from law enforcement. When CZ, the CEO of Binance, backed out of the purchase agreement, the FTX exchange is now facing bankruptcy. As time passes and doubt surrounding the Sam Bankman-Fried crypto conglomerate persists, cryptocurrency prices keep falling more.
The Security Exchange Commission (SEC) is particularly searching into how FTX US managed its customers’ money. In a recent event, SEC chair Gary Gensler stated that investor safety was necessary in the cryptocurrency market.
Gensler did note that when crypto firms trade with one another, it is taking time to gather proof. In an interview with CNBC on November 10, Gensler made the remarks concerning the exchange.
A Tether Exec stated that “We are starting to receive requests from law enforcement to temporarily freeze assets while investigation occur.”
In a recent development, the Financial Services Agency of Japan ordered FTX to cease operations. Additionally, till December 9, integration of new clients was to cease. The regulatory authority declared that it is uncertain of FTX Japan’s financial position at this time. Additionally, they tried to put in writing a solution that would address every problem.
The reason Binance withdrew from the FTX agreement previously was misuse of user cash and continuing investigations. Fears were also expressed about the price of Tether (USDT), which had lost its tie to the value of $1.
The price of Tether (USDT) briefly dropped to $0.982, but it quickly rose to about $1. The price of Tether (USDT) is $0.9976, down 0.13% over the previous day.