Tether freezes USDT linked to Ledger theft.
What happened:
Users in Southeast Asia reported their wallets being emptied after buying Ledger devices from reseller CryptoBilis.
Estimated losses of between US$86 million and US$90 million, not confirmed by Ledger.
The freeze:
Tether blocked more than 20 addresses linked to the funds.
The amounts reported as frozen vary across trackers. One estimates around US$10 million.
The workaround:
Around 14.7 million USDT was swapped for USDD, which Tether cannot freeze.
ETH was moved via Tornado Cash.
The limitations:
A freeze prevents funds from being moved, but does not return them to victims.
Recovery would require other measures. None have been announced.
What this shows:
The power and limitations of issuers.
Rapid intervention versus dependence on centralized decisions.
The cause of the thefts has not yet been confirmed.
If freezes can be bypassed by switching assets, what role should issuers, investigators, and exchanges play?
$MAGIC $LUMIA $ERA
#CryptoSecurity
#TetherFreezesUSDTLinkedToLedgerTheft
What happened:
Users in Southeast Asia reported their wallets being emptied after buying Ledger devices from reseller CryptoBilis.
Estimated losses of between US$86 million and US$90 million, not confirmed by Ledger.
The freeze:
Tether blocked more than 20 addresses linked to the funds.
The amounts reported as frozen vary across trackers. One estimates around US$10 million.
The workaround:
Around 14.7 million USDT was swapped for USDD, which Tether cannot freeze.
ETH was moved via Tornado Cash.
The limitations:
A freeze prevents funds from being moved, but does not return them to victims.
Recovery would require other measures. None have been announced.
What this shows:
The power and limitations of issuers.
Rapid intervention versus dependence on centralized decisions.
The cause of the thefts has not yet been confirmed.
If freezes can be bypassed by switching assets, what role should issuers, investigators, and exchanges play?
$MAGIC $LUMIA $ERA
#CryptoSecurity
#TetherFreezesUSDTLinkedToLedgerTheft