Tether Returned After Being Frozen in Poly Hack, Adding Fuel to the Centralization Debate
After being frozen by its issuer Tether Frozen in Poly Hack Returned to Owners, Fuelling Centralization Debate, the cryptocurrency’s value has been restored to its rightful owners, according to the cryptocurrency’s issuer. Concerns have arisen, however, as to whether or not this specific segment of the Bitcoin market is really decentralised, as its proponents say.
Tether’s official Twitter account stated on Wednesday that they have unfrozen all of the money that had been taken in the Poly breach, after working closely with the network to ensure that all of the “tight procedures” had been put in place were followed and Poly Hack Raises More Questions Than Answers
They went on to say, “Freezing money is not something we take lightly – by being the first to act, Tether showed its commitment to security and ongoing vigilance in ensuring that the community always comes first and Crypto platform Poly Network says hacked funds returned.
Tether’s technical team arranged the multisig freezing procedure after being approached by the Poly team, according to Ardonio’s post. Hundreds of millions of dollars in various crypto assets had been sent to the address that they froze, despite the fact that it had no prior activity such as participation in centralised or decentralised exchanges, decentralised finance (DeFi) pools, or other similar activities.
According to Arduino, this persuaded them that the address belonged to the hacker, and the money was frozen as a result of the discovery and Poly Network tries to persuade the hacker to return stolen assets. In terms of the legal process, users who want to report a hack will need to send an email to the specified Tether address, including a document from law enforcement that verifies the claim and requests that the account is frozen.
In addition, the claimant will be required to undergo Know-Your-Customer (KYC) and Anti-Money-Laundering (AML) processes that are typically intended for banking grade clients only. It may take many months for the money to be returned to their rightful owners after that since the business must first verify that there are no other claims to the funds.
Many in the cryptocurrency world, on the other hand, are concerned that this implies Tether is becoming centralised, which would be in direct opposition to the fundamental principles of the sector. However, even in the face of catastrophic breaches that have cost consumers millions of dollars, many people believe that freezable funds are establishing a hazardous precedent.
Aside from that, many people think that if a crypto project is strong enough to freeze and reverse transactions – something that is theoretically impossible in a fully decentralised system.
Between now and then, the Japanese exchange Liquid Global, which was the victim of yet another recent breach, has received a loan from cryptocurrency exchange FTX, which will be used for Liquid capital position and to accelerate capital production initiatives, as well as to offer liquidity.
They have also said that “Liquid is thankful for the vote of confidence from FTX as well as the invaluable support of its users as it continues in its goal to assist the development of blockchain-based financial services in a compliant way after listening to the Tether Frozen in Poly Hack Returned news”.