It's a net gain for them as these tokens are not redeemable anymore, they can keep the underlying USD ?
Anyway synthetic USD through DLCs are much needed for those who want to escape Bitcoin volatility and still keep self custody of funds...
Tether Freezes All OFAC-Sanctioned Wallets in 'Proactive' Security Measure
"ITether framed the move as a voluntary step to "proactively prevent any potential misuse of Tether tokens and enhance security measures," and clarified that existing wallets on the OFAC list would be frozen along with any new wallets added in the future."
https://www.nobsbitcoin.com/tether-freezes-all-ofac-sanctioned-wallets-in/
Discussion
If they can freeze your addresses how is that considered self custody?