Stablecoin issuer Tether has frozen hundreds and hundreds of dollars of FTX-held USDT essentially based on a quiz from law enforcement.

Recordsdata from the Tron blockchain explorer reveals that $46.5 million price of USDT on the Tron blockchain has now been frozen.

In response to a file from CoinDesk, Tether iced over these funds after a quiz from law enforcement authorities.

“We are starting up to safe requests from LE [law enforcement] to instant freeze assets while an investigation occurs,” said a Tether spokesperson to CoinDesk, adding that it cannot particularly issue on the quiz in request.

Within the meantime, rumors spherical Tether’s attainable links to Alameda Assessment induced traders to wager against the stablecoin. Recordsdata compiled by parsec reveals on-chain traders, led by Mango Markets exploiter Avi Eisenberg, building tall instant positions on USDT against USDC.

“USDT goes from being underweight in 3pool to now 70% of assets, utilization up across lending pools,” wrote parsec in a tweet.

At one level, the USDC Borrow APY on Compound and Aave had reached 38% and 12% respectively.

The ensuing shorts precipitated Tether to instant lose its peg to the U.S. dollar on Thursday, momentarily slipping to a low of $0.98.

Tether CTO Paolo Ardoino brushed off these rumors in a tweet, announcing, “Wow. Must suck to agree with a worse figuring out of finance than an worn lady operating a cashier.”

Ardoino additionally said that Tether had processed $700 million price of redemptions in the last 24 hours on my own.

At press time, USDT had regained parity with the U.S. dollar. The stablecoin had a day after day trading volume of $111 billion, exceeding that of Bitcoin and Ethereum.