Tether Blacklisted ETH Addresses Linked To Multichain Hack

Tether blacklisted ETH addresses that were linked to the Multichain hack and contained more than $715,000 of USDT stablecoins tracing back to the hackers so let’s read furhter in today’s latest Tether news.

Stablecoin issuer Tether blacklisted ETH addresses holding over $715,000 worth of USDT as per the data from block explorer site Etehrscan. The address traces back to the hackers that stole $3 million in crypto on Multichain a month ago, according to the Etherscan labeling of the transactions involving the wallet. Whoever controls the address will not be able to move the funds as long as they are frozen. The hack of the Multichain bridge was made possible due to a security vulnerability that the team behind the project warned the users about it back in January.

Three addresses with over $160 million in USDT were frozen in mid-January a the request of law enforcement and Tether which issues the tokens on blockchains started blacklisting the addresses following a 2017 breach where the company said $30 million of USDT were stolen.

Speaking of the Multichain hack, The users of the cross-chain protocol were affected by an unsolved security vulnerability that appeared earlier this week and the platform failed to act. Later on, Multichain revealed that one whitehat hacker returned 259 ETH which was worth $813,000. it all started when Multichain announced the existence of a flaw that made a few accounts vulnerable to malicious entities. The team behind the protocol urged the users to revoke the approvals for six tokens like MATIC, AVAX, WBNB, OMT, PERI, and EITH in order to protect the asset with an action that prompted hackers to rush in and to exploit the vulnerability.

Three hackers drained about $1.9 million worth of Ether according to MultiChain but the co-founder of ZenGo Tal Be’Ery estimated that the total stolen amount crossed $3 million. One of the hackers swiped $1.43 million from the users that didn’t update their approvals and another hacker even offered to return 80% and kept the $150,000 as a tip. One of the victims that lost $960,000 in the exploit negotiated with the hacker by offering a reward of 50 ETH to the address in return for the funds.

The users were quite confused but one tweet from Multichain said that the funds are safe even when the exploit was underway. A few other victims urged Multichain to compensate and accused the scammer of trying to impersonate the company and steal more funds.