Confiscating USDT vs ETH vs Bitcoin ?

[bountymounty]

I’ve read in many places on the forum that USDT can be frozen by authorities.‌ Is it the same for Ethereum?

What other crypto coin, apart from Bitcoin, can one‍ choose that cannot be frozen by anyone?

The price of BTC is extremely high, so⁠ I’m a bit afraid to invest in it right now."

Let me know if you'd⁤ like further adjustments!

As I read, as long as I have the ETH on my⁣ ledger or Trezor I'm fine no one can touch the ETH:
As for Ethereum (ETH)⁢, it’s somewhat different. Ethereum itself, being decentralized, cannot be "frozen" by authorities in the︀ same way as USDT. However, if you store ETH on a centralized exchange or custodial︁ wallet, those platforms could freeze your assets if they receive legal orders, much like how︂ a bank would freeze traditional financial accounts. On-chain ETH, however, cannot be frozen unless certain︃ regulations force validators to censor transactions, which is a complex and contentious issue in the︄ crypto space.

 

[EliasIT]

The ETH coins on your ledger or trezor should be safe as I have researched.‌ Lt's see if any of the experts can say something.

 

[JohnnyDoe]

No
All those that are decentralized
In relation to what?
Are you implying that the usd⁤ will increase value against btc? If so, go short btc and make a ton of⁣ money.
No worries, after FUD always comes FOMO.
Correct. The specific tokens could be “flagged”,︂ but that’s not something you should be too worried about.
Correct. Not your keys, not your coins.

 

[Burak]

1. Stablecoins (USDT/USDC etc.) and tokens can be frozen by issuers, thousands of Tether addresses‌ are already blacklisted for example. There is DAI, which is decentralized stablecoin, but risk of‍ DAI losing it's peg is probably higher than your wallet getting blacklisted.

2. On-chain native⁠ coins (BTC, ETH, LTC etc.) cannot be blacklisted. Only possibility is that your wallet gets⁤ flagged by Chainalysis or something, in such case you cannot deposit funds to a centralized⁣ exchange. Still possible to cashout though (Tornado Cash, no KYC exchangers etc).

 

[aniglo22]

Check the token contract for each token as each smart contract can be different ,‌ before you start blindly using it .
As you can see in the contract that‍ USDT on the trc20 chain implements a blacklisting mechanism :


Code:

contract BlackList is Ownable⁠ {



    /////// Getter to allow the same blacklist to be used also by other contracts⁤ (including upgraded Tether) ///////

    function getBlackListStatus(address _maker) external constant returns (bool) {

        return isBlackListed[_maker];

    }⁣



    mapping (address => bool) public isBlackListed;



    function addBlackList (address _evilUser) public onlyOwner {

        isBlackListed[_evilUser] =⁢ true;

        AddedBlackList(_evilUser);

    }



    function removeBlackList (address _clearedUser) public onlyOwner {

        isBlackListed[_clearedUser] = false;

        RemovedBlackList(_clearedUser);

    }︀



    event AddedBlackList(address indexed _user);



    event RemovedBlackList(address indexed _user);



}

As you can see the addBlackList︁ and removeBlackList can only be called by the contract owner (tether) .
If these functions︂ are called events are emitted (AddedBlacklist and RemovedBlacklist)
You can track these events here :︃
AddedBlacklist: https://bloxy.info/txs/calls_sc/0xdac17f958d2ee523a2206206994597c13d831ec7?signature_id=37762 (1842 calls until today)
RemovedBlacklist: https://bloxy.info/address/0xdac17f958d2ee523a2206206994597c13d831ec7 (67 until today)

And there︄ is also destroyBlackFunds function in the code :


Code:

    function destroyBlackFunds (address _blackListedUser) public onlyOwner︅ {

        require(isBlackListed[_blackListedUser]);

        uint dirtyFunds = balanceOf(_blackListedUser);

        balances[_blackListedUser] = 0;

        _totalSupply = _totalSupply.sub(dirtyFunds);

        DestroyedBlackFunds(_blackListedUser, dirtyFunds);

    }︆



    event DestroyedBlackFunds(address indexed _blackListedUser, uint _balance);

}

This function destroys/clears your funds (sets it to︇ zero and substracts it from the total supply )
You can track the DestroyedBlackFunds events︈ with this link:
https://bloxy.info/txs/calls_sc/0xdac17f958d2ee523a2206206994597c13d831ec7?signature_id=37762 (until today it got called 854 times)

 

[void]

speaking of USDT... one shouldn't trust a centrally issued computer game token for longer than‌ absolutely necessary

 

[Freetrade]

XMR

Dai would be the only large cap stablecoin I‍ would use. Much less chance of being frozen.

 

[Clank]

XMR is the only one that can’t be blacklisted as it’s anonymous, they would have‌ to blacklist the whole cryptocurrency.

BTC and most of other coins can be blacklisted by‍ exchanges and in the future when companies like Chainanalysis are more widespread by individual buyers⁠ / sellers and businesses

 

[bountymounty]

I put something into LTC‌ roughly 50K it don't look so volatile as BTC to me.
can you explain how to do that⁤ in a small tutor? 😳

 

[Wellington]

USDT very simple due to the collar they︅ have around them - so usually without due process or court irdrr

USDC however goes︆ through due process and court orders

Other stable coins that are not $ are based︇ on domestic court orders which will have to have a burden of proof I.e CHF︈ or SGD ones

Can’t comment on others

Reference protocols

BTC/ETH no not a chance that︉ it can be frozen unless it affects the entire network - however you will see︊ periods where certain countries won’t process via mining/validating transactions

 

[manukahoney]

Just 2 cents - yes, they can not freeze BTC or ETH, however the public‌ keys can be marked and traced and no major exchange or any respected OTC will‍ touch them.

 

[void]

public keys cannot, unless you share your XPUB⁠ voluntarily (which is a bad idea)

what can be marked are addresses hence an appropriate⁤ protocol of working with them is highly advised

 

[Joukilop]

If you're looking to have stablecoins which cannot︅ be frozen.

Use $DAI (it's backup half by USDC) but it cannot be freezen.

 

[aniglo22]

You can see the collateral list of DAI here :
https://makerburn.com/#/rundown

 

[bountymounty]

But DAI is not secure, that's problem if I read the posts from this thread‌ right?

 

[bountymounty]

And what about the discussion in another thread about dirty⁠ BTC that can't be used on Kraken or Binance afterward? Isn't that the same as⁤ them being frozen, since in both cases you can't use them?

And are there also⁣ dirty ETH or LTC?

 

[aniglo22]

Why should DAI be not secure ?

 

[bigdaddyleon]

its decentral and overcollateralized

https://www.ledger.com/academy/what-is-dai

i would rather choose‍ DAI then USDT & USDC

yes sure

you can still use⁣ them to pay for stuff.
you can also clean them
there is a lot of⁢ no kyc exchanges out there for a low fee you can use and clean your︀ coins

 

[diatessaron]

USDT is centralized. Tether will freeze assets if ordered to do so by LEA's.

 

[jafo]

This right here!