- Recently, the stablecoin issuer company CENTRE freezed an Ethereum address holding worth 100,000 USDC.
- CENTRE confirms that it blacklisted an address responding to the request received from law enforcement.
- Further, pointing out in this matter the general counsel at Compound, Jake Chervinsky tweeted that CENTRE should detail the norms.
Recently, the stablecoin issuer company CENTRE freezed an Ethereum address holding worth 100,000 USDC. However, the reason for this issue is not clear yet. But the Centre Consortium launched by Circle and Coinbase revealed in its statement about the blacklisting.
Chervinsky seeking criteria used by CENTRE for blacklisting an address
This issue shared by a source on Twitter stating for the first time, CENTRE has blacklisted an address holding USDC. Further, pointing out in this matter the general counsel at Compound, Jake Chervinsky tweeted that CENTRE should detail the norms used by the platform for blacklisting an address.
This is important: USDC blacklisting has gone from a hypothetical concern to a real risk. CENTRE should now explain in detail what criteria it uses in deciding when to blacklist an address. Was this compelled by court order or done voluntarily? Is there a process for appeal? Etc. https://t.co/tCAx3uxXlM
— Jake Chervinsky (@jchervinsky) July 8, 2020
Chervinsky queried the firm whether this decision was compelled by the court or was taken voluntarily. Also if there is any process to appeal.
CENTRE USDC confirms that it blacklisted an address responding to the request received from law enforcement. Moreover, the transaction can be viewed in the blockchain explorer Etherscan where it indicates that a function “blacklist (Address investor)” was seen on June 16, 2020.
The blacklisted address cannot receive USDC
According to Circle’s website, when any address is blacklisted, it cannot receive USDC anymore. The entire USDC handled by that address will be blocked and cannot be transferred on-chain. The only authorized entity behind blacklisting any addresses is the CENTRE consortium.
As a representative from the joint Circle-Coinbase operation, Josh Hawkins notified that he could not provide any specific details pertaining to the blacklisting. It looks as if the address could be engaged in any cryptocurrency theft. Chervinsky’s inquiry toward this issue is justifiable.
This issue has raised concern in the virtual currency market with users remarking that central government control and censorship is just getting worse.