Tether Alters Terms, Limits Redemptions in Singapore

According to reports, Tether has modified its terms of service (ToS) in Singapore. An email shared by the CEO of decentralized finance protocol Cake DeFi on September 25 indicates that the company’s Terms of Service have been modified to prohibit certain customer bases from redeeming Tether.

Cake co-founder and CEO Julian Hosp shared an email from Tether stating that the company cannot redeem USDT for US dollars due to alterations in its terms of service.

Hosp stated in a post on X (previously Twitter) that he was uncertain whether Singapore-based Cake could redeem USDT into U.S. currencies.

The most significant modifications to Tether’s terms of service include limiting its enrollment standards and prohibiting Singapore-based corporations, directors, and shareholders from becoming customers.

Many members of the crypto community, including Cake DeFi, were perplexed by the phrase “controlled by another entity.” Consequently, you will not be able to receive or redeem tokens from the platform.”

X customers emphasized the recent change to Tether’s Terms of Service coincides with a significant crypto money laundering scandal in Singapore, where assets seized from the bust have grown to over $2 billion.

Another user hypothesized that the modifications to the USDT redemption terms could be a Cake DeFi-specific issue, speculating that the DeFi protocol is flagged as enhanced due diligence (EDD), and therefore it could be a partnership issue between the two companies.