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      Tether Freezes THORChain Vaults, Halting Tron Swaps

      On October 9, 2026, Tether blacklisted four vault addresses on the Tron network, freezing approximately 1.45 million USDT. This action immediately disrupted THORChain's cross-chain swaps and liquidity-provider operations, which allow users to trade native assets across different blockchains without relying on centralized exchanges.

      THORChain co-founder Chad Barraford stated that the team received no prior notification from Tether regarding the freeze. The vaults, which hold pooled assets necessary for facilitating swaps, became immobilized overnight, halting all related activities on the platform.

      The freeze raises concerns for liquidity providers on the Tron side, as their capital is now partially inaccessible. THORChain, which currently secures around $47.9 million in total liquidity across all assets, has not yet provided a timeline for restoring service or a full account of the incident. This situation highlights a vulnerability within decentralized finance (DeFi) protocols, where centralized control over an asset can lead to significant disruptions.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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