Centre, the corporate that points the stablecoin USD Coin (USDC) has blacklisted an Ethereum tackle holding $100,000 in USDC in response to a regul
Centre, the corporate that points the stablecoin USD Coin (USDC) has blacklisted an Ethereum tackle holding $100,000 in USDC in response to a regulation enforcement request. Within the first of its type, the tackle had a “blacklist(tackle investor)” perform referred to as on June 16, 2020.
It’s not but clear the rationale behind the regulation 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 regulation enforcement. Whereas we can’t touch upon the specifics of regulation enforcement requests, Centre complies with binding courtroom orders which have applicable jurisdiction over the group.”
A recognized thief
Though Circle spokesperson Josh Hawkins, mentioned he couldn’t present any specifics in regards to the blacklisting, it seems the tackle could possibly be concerned in different cryptocurrency theft.
Within the remark part of a unique tackle, a consumer claims the proprietor of the blacklisted tackle stole different tokens from them:
“Hi there unknown thief, you might be 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 recognized 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 consumer acknowledged that Dai (DAI) may repair this situation of centralized management, nevertheless they had 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, nevertheless, in relation to USDC, an tackle could be blacklisted which restricts them from executing transactions (sending or receiving) by 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 considerations among the many neighborhood surrounding censorship with a consumer lamenting on Reddit:
“Central authorities management and censorship is simply going to worsen.”
One other consumer commented on Twitter saying the “C” in USDC “stands for censorable.”