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Tether Has Blacklisted USDT Worth $31.4 Million After the Hack Of FTX

On the 11th of November, many wallet addresses connected to the FTX crypto exchange were discovered transacting crypto worth several million dollars without issuing any official notice. This ignited speculations spanning between the start of the bankruptcy proceedings of FTX to the engagement of exploiters. Just in some hours, it was confirmed by FTX on its official Telegram channel that the respective transactions were included in a hack.

Tether Bans $31.4 Million USDT after the Supposed Hack of FTX

After the confirmation by FTX on Telegram that a hack has taken place on the crypto exchange, Tether turned toward a proactive measure and blacklisted up to $31.4M amount of USDT connected to the transfers. As mentioned by ZachXBT (a blockchain investigator), the USDT tokens which have been blacklisted were equal to $3.9M on Avalanche and $27.5M on Solana.

Musk Remarks on the Matter

Elon Musk, a billionaire and the latest Twitter owner, also jumped into the matter. He admitted in a tweet that the whole developments of the FTX Collapse are being captured in real-time by Twitter. Tether, by the supposedly exploited USDT tokens’ blacklisting, disarmed the exploiters from draining off the assets to some other account. They were not even able to exchange the respective tokens for some other crypto assets.

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As included in the remediation, it is up to Tether if the platform intends then it can burn the blacklisted tokens as well as reissue equivalent assets to their original owner. Nonetheless, the exploiter additionally stole several other crypto tokens, taking into account USDP, Chainlink, and Ethereum. There is a requirement for the respective ecosystems to intervene in this issue to prevent their exploitation.

Crypto Exchanges Assure Sharing Proof-of-Reserves for Consumers’ Trust

During some of the previous days, prominent crypto exchange venues, such as, OKX, Kucoin, and Binance, showed a determination to share proof-of-reserves and regain the confidence of their investors. Playing a lead role in this scenario, Paolo Ardoino (the CTO of Bitfinex) shared up to 135 hot and cold wallet addresses disclosing the proof-of-reserves of Bitfinex.

He added that the platform had additionally constructed an open-source library in the past. He mentioned that they have a strategy to get a revival with a method for the consumers to cryptographically validate their balances while maintaining their privacy. Though the move was appreciated on the behalf of the investors, several community members highlighted a deficiency in the liability figures of Bitfinex, making its data imperfect for review.


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Mubashar Nawaz (United Arab Emirates)

Mubashar Nawaz is an experienced crypto writer working for Tokenhell. Having passion for writing, he covers news articles from blockchain to cryptocurrency.

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