Crypto expert Star has emphasized that crypto decentralization is a myth, noting that crypto networks and companies can freeze assets. The expert specifically referred to the Tether freeze and Arbitrum’s attempt to freeze the crypto assets stolen by the Kelp DAO exploiter.
Expert highlights the myth of crypto decentralization
In one X messageStar stated that centralization within TRON USDT has been exposed. The expert noted that Tether just performed the largest freeze in its history. freeze of $344 million USDTwhich it conducted in coordination with OFAC and U.S. law enforcement authorities. This was done directly through USDT’s smart contract, with the funds visible but completely unusable.
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Further commenting on how it works, Star explained that Tether has administrative control over USDT contracts, proving that crypto decentralization is a myth. The expert added that this administrator control makes this possible the USDT issuer to blacklist any address, immediately freeze balances and permanently destroy funds.
It is worth noting that Tether had confirmed the freeze and stated that it supported the US government in freezing $344 million USDT at two addresses, which were on the internet. the TRON network. The company added that the freeze was implemented after the addresses were identified, preventing further cash flows.
A CNN report confirmed that the US government ordered the freeze of these USDT funds because they are linked to Iran. Iran had notably opted against stablecoins in favor of Bitcoin for toll payments at the Strait of Hormuz about the fear of confiscation, which further highlights the myth surrounding crypto decentralization.
Meanwhile, Star pointed out that the Tether freeze on TRON happened just days after the network’s founder. Justin Sun, said that TRON is the most decentralized blockchain in the world after the Arbitrum incident. Sun has not yet commented on the Tether freeze on the TRON network, which occurred earlier this week.
The Arbitrum incident also raises concerns
Star also cited the Arbitrum incident to emphasize that crypto decentralization is a myth. Earlier this week, Arbitration announced that the network’s Security Council had taken emergency measures to freeze the 30,766 ETH held at the Arbitrum address linked to the Kelp DAO exploiter.
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The network stated that the Security Council acted with input from law enforcement regarding the identity of the exploiter. It is worth noting that the Kelp DAO exploiter had stolen up to $292 million worth of ETH from the Kelp DAO Bridge last weekend. Meanwhile, Arbitrum’s decision to freeze this ETH provoked mixed reactions.
Crypto expert Advocate noted that Arbitrum, regularly praised by Vitalik Buterin as the most decentralized Layer-2, has just frozen its funds. On the other hand Helius CEO Mert praised this move, noting that Arbitrum would have the means of control and refuse to use them to appease the exploiters, would be a “much worse and dishonorable outcome.”
Featured image of Pxfuel, chart from Tradingview.com