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Tether's USDT Can Permanently Clear Blacklisted Addresses
Tether's USDT cryptocurrency has a built-in mechanism that allows it to permanently remove blacklisted addresses from its network, according to analysis from the account @blockchainchick. This feature, known as the destroyBlackFunds function, has been part of the USDT contract since its launch on the Ethereum blockchain in 2017. The function works by confirming that an address is blacklisted, setting its balance to zero, and deducting the corresponding amount from the total supply, with no option for reversal.
Only Tether's multi-signature owners have the authority to invoke this function on both the Ethereum and Tron networks. The U.S. Department of Justice referenced this process in a forfeiture case in Massachusetts in March 2025, which involved approximately $9,016,612 USDT. This indicates that Tether has the capability to manage its supply actively while addressing compliance and security concerns.
In contrast, the USDC stablecoin can restrict access to wallets but lacks the ability to destroy balances. The analysis suggests that Tether's mechanism has been effectively operating on both the Tron and Ethereum platforms, while Bitcoin does not support similar features. This functionality highlights Tether's approach to maintaining the integrity of its digital currency in the face of regulatory scrutiny.
Source: KLEA News