Tether, the company behind the famous stablecoin USDT, has recently made a significant decision that has shaken the cryptocurrency market in Russia. Today, in fact, Tether has frozen as much as 27 million dollars in USDT on the Russian exchange Garantex, which has been sanctioned by the European Union.
This move led to the temporary suspension of all operations on the platform, including withdrawals, leaving numerous users in a situation of uncertainty.
Details and implications of the freezing of funds by Tether
Garantex announced on Telegram that Tether has frozen the exchange’s funds, which amount to over 2.5 billion rubles. This freeze comes at a sensitive time, as the European Union included Garantex in its 16th package of sanctions against Russia, announced on February 26, as part of the punitive measures related to the ongoing conflict with Ukraine.
The Russian exchange warned its users that “all USDT in Russian wallets are currently under threat,” while expressing determination not to surrender in the face of adversity.
International context and reactions
The sanctions against Garantex are not isolated. The EU and the United States have intensified their actions against entities economically linked to Russia. The Office of Foreign Assets Control of the US Department of the Treasury had already imposed sanctions on Garantex in April 2022, marking an important precedent in the regulation of criptovalute in contexts of international sanctions.
This situation raises significant questions regarding the security and stability of crypto funds in complex geopolitical contexts and underscores the importance of compliance with international regulations.
Final Considerations
The freezing of funds by Tether represents a critical moment for the cryptocurrency market in Russia and could have long-term repercussions on investor confidence and market stability. As the situation evolves, it will be essential to monitor market reactions and possible legal actions that might emerge in response to these drastic measures.
This is an evolving situation, and it will be important to stay informed about further developments that could influence not only Garantex users but the entire bull and bear cryptocurrency ecosystem globally.