A broader review of Ethereum and TRON freeze events suggests Tether's multisignature process can leave a window for flagged USDT to move before a block takes effect.
FlashRescue co-founder Darcy said a recent case showed funds were moved from a flagged wallet while Tether was still executing a freeze, reducing the amount ultimately blocked. A broader analysis of 2,955 Tether freeze events on Ethereum and TRON found an average delay of 2 hours, 16 minutes and 15 seconds between a freeze proposal and on-chain execution, with the lag tied to Tether's multisignature wallet process. The review said at least 60 addresses fully emptied $20.4 million in USDT before freezes took effect, while another 113 addresses moved about $35.5 million partially before execution. The criticism contrasts with Circle, which has faced complaints for not freezing often enough after CEO Jeremy Allaire said USDC wallets are frozen only at the direction of law enforcement or courts. Tether has said it works directly with investigators during active cases and has helped freeze more than $4.4 billion across over 2,300 cases with more than 340 law enforcement agencies in 65 countries.