Tether Freezes $10M as Ledger Incident Draws Attention
- Tether has frozen approximately $10 million in tokens linked to criminal activity, as confirmed by Bitquery.
- As of October 11, about $81 million in funds could still be traced onchain, with some moving through Tornado Cash and Zcash.
- Ledger’s incident has been criticized for being mischaracterized as a CryptoBilis issue, despite the reseller being listed as authorized on Ledger’s website.
- The current situation differs from an April phishing attack that drained at least $9.5 million from users via a fake Ledger Live app.
- Ledger advised customers who used affected devices to transfer assets to new devices with newly generated recovery phrases.
The Tether freeze highlights the ability of stablecoin issuers to block tokens associated with crime, unlike bitcoin or ether. With up to $93 million traced in total, the incident underscores the importance of security measures in cryptocurrency transactions.
In summary, Tether’s freezing of $10 million and the tracing of up to $93 million emphasizes ongoing security challenges within the cryptocurrency space.(Source)
