Darcy, co-founder of Flash Rescue, said in a public post on X that his team analyzed 2,955 Tether freezing events across the Ethereum and TRON networks. According to the findings, 60 high-risk addresses moved all of their assets before the freeze was finally executed, with total outflows reaching about 20,429,800 USDT. A further 113 addresses transferred part of their holdings ahead of the freeze, involving roughly 35,524,300 USDT. Darcy also noted that Tether takes an average of approximately 2 hours and 16 minutes from the moment a freeze proposal is made public to when it is actually enforced. That time gap, he said, gives a potential window to addresses that monitor public proposals and can shift funds out before the freeze lands. As a result, the mechanism can lead to failed freezes of involved funds, and it can weaken the impact of sanctions, anti-money laundering programs, and law enforcement coordination, according to the Flash Rescue team.
Darcy, co-founder of Flash Rescue, said in a public post on X that his team analyzed 2,955 Tether freezing events across the Ethereum and TRON networks. According to the findings, 60 high-risk addresses moved all of their assets before the freeze was finally executed, with total outflows reaching about 20,429,800 USDT. A further 113 addresses transferred part of their holdings ahead of the freeze, involving roughly 35,524,300 USDT.
Time gap between proposal and execution
Darcy also noted that Tether takes an average of approximately 2 hours and 16 minutes from the moment a freeze proposal is made public to when it is actually enforced. That time gap, he said, gives a potential window to addresses that monitor public proposals and can shift funds out before the freeze lands.
Impact on enforcement
As a result, the mechanism leads to failed freezes of involved funds, and it undermines sanctions, anti-money laundering efforts, and law enforcement coordination.
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