Centre Consortium has blacklisted an ethereum handle holding $100,000 in USDC, a transfer that the entity says was “in response to a request from legislation 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 could be the primary time that an handle has been blacklisted.
In keeping with a file of transactions on Etherscan, Centre referred to as a “blacklist(handle investor)” perform on the handle in query. The motion successfully froze all the cash within the handle. It’s not clear who owns it.
Blacklisting means an handle will not have the ability to obtain or ship USD Coin (USDC) via the stablecoin’s sensible contracts, Centre explains on its web site. All USDC balances held in blacklisted addresses could also be misplaced perpetually, it provides.
“Centre can verify it blacklisted an handle in response to a request from legislation enforcement,” a Circle spokesperson, talking on behalf of Centre, was quoted as saying by business media.
“Whereas we can not touch upon the specifics of legislation enforcement requests, Centre complies with binding court docket orders which have acceptable jurisdiction over the group,” the spokesperson mentioned.
Centre’s relationship with authorities authorities is one thing that throws into doubt the “delusion” of decentralization generally related to cryptocurrency. It exhibits how closely authorities whims have been imposed upon buyers and exchanges.
This new wave of regulation poses a contradiction in that a few of cryptocurrency’s strongest traits have at all times been privateness and autonomy.
Now, as Centre demonstrates, people trying 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 embrace the freezing of accounts.
Nonetheless, the blacklisted handle seems to have a shady historical past. A remark to the handle alleges:
Whats up unknown thief, you’re involved with this eth handle 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] handle. If you don’t do that, I’ll report you anyplace along with your two recognized addresses.
Officers at Centre didn’t disclose the explanations that led to the blacklisting, as demanded by the legislation enforcement businesses.
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