Tether Says It Froze Over 4.5 Million USDT Tied to Mercado Bitcoin Incident
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Tether has frozen more than 4.5 million USDT linked to the Mercado Bitcoin incident, with on-chain records on Ethereum and Tron confirming blacklist actions against exchange-identified wallets. The stablecoin issuer's move locks the flagged funds in place while deposits and withdrawals at Mercado Bitcoin remain suspended. The action underscores Tether's ability to intervene directly in circulating USDT supply, a capability that has drawn both regulatory scrutiny and praise for protecting users in exchange-failure scenarios. With the exchange's fiat and crypto rails still halted, affected users face continued uncertainty over fund recovery timelines. Market participants will be watching for further blacklist expansions, any court or regulatory directives shaping the freeze, and whether Mercado Bitcoin provides a schedule for restoring withdrawals.
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Tether, Mercado Bitcoin, USDT, Ethereum (ETH), Tron (TRX)
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