Tether Halts USDT Redemption For Select Singapore Customers
Tether states that ‘Cake DeFi' was founded to be controlled by another corporation in Singapore, not to redeem USDT.
Reportedly, Tether's service (ToS) conditions in Singapore have been modified. A 25 September email from the CEO of the decentralized finance protocol Cake DeFi reveals modifications to the company's terms of service prohibiting certain customer bases from redeeming Tether USDT.
Cake co-founder and CEO Julian Hosp shared an email from Tether stating that the company cannot redeem USDT for U.S. dollars due to a change in its terms of service.
Ok, so, I won't be able to tell you if redeeming $USDT into $USD is actually possible, due to being in #Singapore, which was a recent change to the @Tether_to ToS from one day to another. Interesting. pic.twitter.com/1YzNqkbjMO
— Dr. Julian Hosp (@julianhosp) September 25, 2023
Hosp stated in a post on X (previously Twitter) that he was still determining if Cake could redeem USDT into U.S. dollars due to its Singaporean location.
The most significant adjustments to Tether's terms of service include limiting its onboarding standards and prohibiting corporations, directors, and shareholders residing in Singapore from becoming Tether customers.
The term “controlled by another entity” confused the crypto community, including Cake DeFi, which was informed that it is “controlled by another corporation in Singapore. Accordingly, you will not be permitted to be issued or redeemed from the platform.'
Users of X noted that the recent change in Tether's Terms of Service coincides with a significant crypto money laundering scandal in Singapore, where assets seized from the bust have risen to over $2 billion.
🚨🚨 🚨 1 month after the massive money laundering bust in Singapore, Tether restricts customers in Singapore
— Rho Rider (@RhoRider) September 25, 2023
Crypto firms have flocked to SG recently for friendlier regs. This could be a huge blow
W/ the HKG crackdown, the gates to Asia are closing for the crypto cartel https://t.co/yVu79bJHgb
Another user hypothesized that the changes to the USDT redemption terms could be a Cake DeFi-specific issue, speculating that the DeFi protocol is flagged as enhanced due diligence (EDD). Therefore, it could be a partnership issue between the two companies.
🚨Ω🚨#Tether updated its terms of service.
— ⚯ M Cryptadamus ⚯ | @[email protected] (@Cryptadamist) September 25, 2023
"Tether has changed its ToS to, among other things, restrict its onboarding standards. Corporates controlled by another entities, directors, shareholders residing in Singapore are no longer permitted to be Tether customers." pic.twitter.com/Wu4eVKKgaC
Tether did not respond to any request for comment on the email shared by Cake's CEO and modifications to its Terms of Service by publication.