# Etherfuse’s Stellar freeze and clawback powers

> Etherfuse gained powers to revoke authorization and claw back eligible balances. Ketju’s eligibility file lists neither power for the Stellar CETES issuer.

- URL: https://riadefi.com/on-chain/2026-10-06-etherfuse-stellar-issuer-flags/
- Type: Control change
- Stage: Executed
- Evidence: confirmed
- Materiality: material
- Event date: 2026-10-06
- Version: 6, published 2026-10-31 (first published 2026-10-09)
- Follow-up: 2026-11-02
- Advisor-relevant: yes
- Affects: Etherfuse Stablebonds (protocol)

## What happened

Etherfuse enabled authorization revocation and clawback for its Stellar issuer on October 6, 2026, according to the successful Stellar operation.

## What changed

Etherfuse gained powers to revoke authorization and claw back eligible balances. Ketju’s eligibility file lists neither power for the Stellar CETES issuer.

## What did not change

The cited Stellar evidence establishes no change to Etherfuse’s permissions on Solana, Base, Polygon or Monad.

## Confirmed

- Etherfuse’s issuer enabled auth_revocable and auth_clawback_enabled at 2026-10-06T21:54:47Z, according to Stellar.
- Stellar still showed both flags as true on October 31, 2026.
- Stellar showed five signers with weight 1 each and authorization thresholds of 3 on October 31, 2026.

## Still open

- The cited evidence does not establish which existing holder balances permit clawback.
- The cited evidence does not establish whether Etherfuse has frozen or clawed back any holder’s tokens.
- Etherfuse’s reason for enabling these powers remains unconfirmed.

## What it means for an advisor

- Ketju should review the Etherfuse memo and eligibility file because their Stellar permission descriptions conflict with current issuer powers.
- Advisors should account for Etherfuse’s ability to restrict transfers and remove eligible balances when reviewing Stellar holdings.

## Updates

- 2026-10-06 · Executed · Etherfuse turns on freeze and clawback for its Stellar issuer · [Etherfuse issuer control transaction operations](https://horizon.stellar.org/transactions/5ad34f720108dcd6d92ad8bc78f2c151076206a01e8ae652829c2d35f0bfda76/operations) (Stellar public ledger via Horizon, 2026-10-06)

## Sources

1. [Etherfuse issuer authorization and clawback changes](https://horizon.stellar.org/operations/278346440927899654) · Stellar public network through Horizon · 2026-10-06
2. [Etherfuse issuer account permissions](https://horizon.stellar.org/accounts/GCRYUGD5NVARGXT56XEZI5CIFCQETYHAPQQTHO2O3IQZTHDH4LATMYWC) · Stellar public network through Horizon · 2026-10-31


---

Published by Ketju Research on RIADeFi (https://riadefi.com). Educational research for financial professionals; not investment, legal, tax, or compliance advice.