Centre Consortium has blacklisted an ethereum deal with holding $100,000 in USDC, a transfer that the entity says was “in response to a request from law enforcement.”
A three way partnership between Circle and Coinbase, Centre is the issuer of the dollar-pegged USDC stablecoin, which runs on the Ethereum blockchain. It often is the first time that an deal with has been blacklisted.
According to a record of transactions on Etherscan, Centre known as a “blacklist(address investor)” perform on the deal with in query. The motion successfully froze all the cash within the deal with. It’s not clear who owns it.
Blacklisting means an deal with will now not be capable of obtain or ship USD Coin (USDC) by way of the stablecoin’s sensible contracts, Centre explains on its web site. All USDC balances held in blacklisted addresses could also be misplaced ceaselessly, it provides.
“Centre can confirm it blacklisted an address in response to a request from law enforcement,” a Circle spokesperson, talking on behalf of Centre, was quoted as saying by trade media.
“While we cannot comment on the specifics of law enforcement requests, Centre complies with binding court orders that have appropriate jurisdiction over the organization,” the spokesperson mentioned.
Centre’s relationship with authorities authorities is one thing that throws into doubt the “myth” of decentralization generally related to cryptocurrency. It reveals how closely authorities whims have been imposed upon traders and exchanges.
This new wave of regulation poses a contradiction in that a few of cryptocurrency’s strongest traits have all the time been privateness and autonomy.
Now, as Centre demonstrates, people seeking to function in an insular system, away from central financial institution and state oversight, are more and more confronted with new top-down calls for, which embody the freezing of accounts.
However, the blacklisted deal with seems to have a shady historical past. A comment to the deal with alleges:
Hello unknown thief, you’re involved with this eth deal with 0xEeC84548aAd50A465963bB501e39160c58366692 and also you stole 10,000 Loopring Coin (750 euros) from my pockets. I’m now supplying you with an opportunity to ship the 10,000 Loopring Coin again to me. You already know my [ethereum] deal with. If you don’t do that, I’ll report you wherever along with your two recognized addresses.
Officials at Centre didn’t disclose the explanations that led to the blacklisting, as demanded by the regulation enforcement businesses.
What do you consider Centre blacklisting this deal with? Let us know within the feedback part beneath.
Image Credits: Shutterstock, Pixabay, Wiki Commons