Centre, the corporate that points the stablecoin USD Coin (USDC) has blacklisted an Ethereum tackle holding $100,000 in USDC in response to a legislation enforcement request. Within the first of its form, the tackle had a “blacklist(tackle investor)” perform known as on June 16, 2020.
It’s not but clear the explanation behind the legislation enforcement request, however Centre Consortium — based by Circle and Coinbase — did launch a press release confirming the blacklisting:
“Centre can affirm it blacklisted an tackle in response to a request from legislation enforcement. Whereas we can’t touch upon the specifics of legislation enforcement requests, Centre complies with binding court docket orders which have applicable jurisdiction over the group.”
A identified thief
Though Circle spokesperson Josh Hawkins, mentioned he couldn’t present any specifics in regards to the blacklisting, it seems the tackle might be concerned in different cryptocurrency theft.
Within the remark part of a special tackle, a person claims the proprietor of the blacklisted tackle stole different tokens from them:
“Good day unknown thief, you’re involved with this eth tackle 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 eth tackle. If you don’t do that, I’ll report you wherever together with your 2 identified addresses.”
They’re all the identical
Final week USDC broke $1 billion market cap, making it the second-largest stablecoin behind Tether (USDT), and Twitter customers likening stablecoins to centralized fiat currencies, suggesting what can occur to USDC can occur to every other stablecoin.
One other person acknowledged that Dai (DAI) might repair this problem of centralized management, nonetheless they have been additionally rebutted with the truth that DAI is backed by USDC and different centrally managed digital currencies.
It’s all about censorship
Usually funds held on the Ethereum blockchain are managed by the tackle proprietor, nonetheless, in relation to USDC, an tackle could be blacklisted which restricts them from executing transactions (sending or receiving) via the USDC sensible contract. Though technically reversible, Circle’s web site warns that blacklisted addresses could also be “wholly and completely unrecoverable.”
This has raised issues among the many group surrounding censorship with a person lamenting on Reddit:
“Central authorities management and censorship is simply going to worsen.”
One other person commented on Twitter saying the “C” in USDC “stands for censorable.”