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Stablecoin Provider Blacklist an Address with $100K USDC

Stablecoin provider CENTRE has blacklisted an address holding $100,000 USD Coin (USDC), the address data reveals. The blacklist function was called on June 16, 2020, using an address owned by CENTRE.

Speaking to The Block, a spokesperson for CENTRE confirmed that the address had been blacklisted, though it did not divulge the reason why it had been blocked,

Centre can confirm it blacklisted an address in response to a request from law enforcement. While we cannot comment on the specifics of law enforcement requests, CENTRE complies with binding court orders that have appropriate jurisdiction over the organization.

CENTRE has stated in its documentation that addresses can be blacklisted to comply with legal requirements,

A global blacklist is maintained by the USDC smart contract, and this was implemented to comply with legal requirements such as a court order or global sanctions restriction. Reserves associated with USDC balances held on blacklisted addresses may be wholly and permanently unrecoverable.

In March 2020, USDC was approved by Maker (MKR) to act as collateral on its platform, which received a less than stellar welcome from the community. Users highlighted issues of both centralization and risk, and were unwilling to participate in what they believed to be a corporate run stablecoin. Moreover, they criticized Maker, which is a decentralized issuer of stablecoins, for adding USDC tarnished the decentralized spirit of the protocol.

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