Comment by redox99
15 hours ago
The smart contract for those tokens supports freezing. Tether just calls the freeze function on that address.
15 hours ago
The smart contract for those tokens supports freezing. Tether just calls the freeze function on that address.
Can they forcibly reverse the transaction so that Binance gets their money back?
No. The last time this happened, it led to the Ethereum/Ethereum classic split, and that was 10 years ago.
However, the stablecoins are not “real” cryptocurrencies like e.g. BTC or ETH, but are built as smartcontracts on top of ETH, basically using it as a big replicated database. So they might(?) just manually “give back” the money to Binance, as in freezing money in the stolen account forever and “printing” an equal amount to Binance's credit.
Or, to put it in another way, no need to reverse an erroneous SQL transaction if you can just create a new one that fixes the data you altered.
And it's impossible to mix them because Ethereum is even anonymous than Bitcoin.
How so? If anything, Ethereum can host trustless mixers more easily than Bitcoin due to its smart contract execution being Turing complete.
Isn't it already too late at that point? The tokens would have moved already.
I think the idea is that they freeze them indefinitely, and then they no longer count against the centralised reserves, since they can never cash out. Now they can mint the equivalent amount back to Binance and remain solvent.
And how do they ‘mint’ 2 billion without affecting the price of tether and without finding 2 billion to back it?
If they can mint with no impact doesn’t that mean they can just print money?
5 replies →
Moved where? Moving to a different wallet wouldn't prevent freezing. It's 5B, impossible to cash out or exchange for different crypto quickly.
Excluding wash and artificial activity, supposedly stablecoins trade 400M/h so if it took 2h to notice and lock they might have been able trade about half a billion without overwhelming existing volumes?
https://finance.yahoo.com/markets/crypto/articles/stablecoin... (I didn't verify per-stablecoin volume, or actual volume at those hours, or typical volume for those exact hours, which a better analysis would have done.)
here's an interesting article by DataFinnovation arguing that blacklisting crypto is doomed to fail.
https://medium.com/chainargos/losing-the-blacklisting-race-e...
right but too late to call freeze on the original wallet address as per gp's post. I would imagine it got distributed to many wallets and attempts to tumble by the time Tether could move on it.
they took loan against it.