Crypto pundit Star has shown that crypto decentralization is a myth, noting this crypto networks and companies can freeze money. The analyst also mentioned the suspension of Tether and Arbitrum’s move to stop the crypto assets stolen by the Kelp DAO exploiter.
Pundit Reveals Myths About Crypto Decentralization
In a X postStar reports that centralization has been revealed within TRON USDT. Pundit also reported that Tether just experienced the biggest cold in its history, cool $344 million USDTwhich was conducted in cooperation with OFAC and US law enforcement. This was done directly through the USDT smart contract, with visible but never used funds.
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Explaining how it works, Star explained that Tether has control over the USDT industry, which proves that crypto decentralization is a myth. Pundit added that this admin control is possible USDT provider banning any address, suspending the balance immediately, and forfeiting all funds.
It is worth noting that Tether confirmed the suspension, saying that it helped the US government freeze $ 344 million USDT on two addresses, which were. Price TRON. The company added that the suspension was carried out after the addresses were identified, preventing the movement of funds.
A CNN report confirmed that the US government had ordered that these USDT coins be frozen because they are linked to Iran. Iran decided against stablecoins instead of Bitcoin for toll payments on Hormuz River for fear of being caught, I review the myth surrounding cryptodecentralization.
Meanwhile, Star reported that Tether’s freeze on TRON came just days after the network launch, Justin Sun, he said that TRON is the most popular blockchain in the world after the Arbitrum event. The Sun has yet to comment on the Tether freeze on the TRON network, which happened earlier this week.
The Arbitrum Event Raises Concerns
Star also cited what happened at Arbitrum to prove that cryptodecentralization is a myth. Earlier this week, The verdict was announced that the Security Council of the network took an emergency action to stop 30,766 ETH being held in the Arbitrum address associated with the operator Kelp DAO.
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The network said that the Security Council had taken action with the police to find out who had eaten. It is worth noting that Kelp DAO user stole up to $292 million in vulnerable ETH from the Kelp DAO bridge last week. Meanwhile, Arbitrum’s decision to freeze this ETH has confused various people.
Crypto currency Pleditor said that Arbitrum, which is always appreciated from Vitalik Buterin as the most distributed part of Layer-2, has just stopped investing. On the other hand, Helius CEO Mert thanked the move, noting that Arbitrum’s having control mechanisms and refusing to use them to appease abusers would have “very negative and disrespectful consequences.”
Image from Pxfuel, chart from Tradingview.com
