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The center freezes an Ethereum address at $ 100,000

July 9, 2020

Center, the company that issues the Stablecoin USD Coin (USDC), has blacklisted an Ethereum address of $ 100,000 in response to a request from law enforcement. For the first time the function “Blacklisting (address of the investor)” was activated for an address on June 16, 2020.

The reason for the law enforcement request is still unclear, however The Center Consortium, founded by Circle and Coinbase, made a statement confirming the blacklist::

“The center can confirm that it has blacklisted an address in response to a law enforcement request. Although we cannot comment on the details of the law enforcement requests, The center adheres to binding court orders that are responsible for the organization“”

A well-known thief

The center freezes an Ethereum address at $ 100,000The center freezes an Ethereum address at $ 100,000

Although Circle spokesman Josh Hawkins said he could not explain the blacklist in more detail, It seems that management could be involved in other crypto thefts.

In the comments section of another address, A user claims the owner of the blacklisted address stole other tokens from him::

“Hello unknown thief, you have contact with this eth address 0xEeC84548aAd50A465963bB501e39160c58366692 and you have stolen 10,000 loop ring coins (750 euros) from my purse. Now I am giving you the opportunity to return my 10,000 loop ring coins. Yes, you know mine eth address. Yes you don’t, I will report you anywhere with your two known addresses. “

they are all the same

Last week, USDC broke the billion dollar market cap recordand becomes the second largest stable coin after Tether (USDT) Twitter users compare stablecoins to centralized Fiat currencies, propose What happens to USDC can happen to any other stable coin.

Another user explained that Dai (DAI) could solve this centralized governance problemHowever, this was also refuted by the fact that DAI is supported by USDC and other centrally controlled digital currencies.

It’s about censorship

However, the funds held in the Ethereum blockchain are usually controlled by the address holder With regard to USDC, an address can be blacklisted that limits the execution of transactions (sending or receiving) via the USDC Smart contract. Although technically reversible, the Circle website warns that blacklisted addresses can be “completely and permanently unrecoverable”.

This has raised censorship concerns in the community, and one user complained about Reddit:

“The central government’s control and censorship will only get worse.”

Another user commented on Twitter that the “C” in USDC “means objectionable”.

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