I'd like to understand where this went wrong. Tether seems to be a multichain 💩coin. I assume this didn't happen on the liquid network, which has support for this, but someone else holding their tether in a wallet with a backdoor. This would be the equivalent of holding your bitcoin on an exchange. I would venture to guess that had these assets been on the liquid chain, this wouldn't have happened. Would love more info on this. #asknostr
Discussion
On tron and eth, addresses can be locked out of the tether contract's spend function.
But tether can also blacklist coins on any chain, meaning that an institution can't redeem them for USD or treasuries etc. That would impact liquid.
There's also two tether operators. One is registered in BVI and the other in HK, I think one of them can redeem and one of them can't, or something like that