Tether Loophole Leads to $78M Loss

Delay in Tether’s USDT Freeze Allows $78 Million Loss

• Blockchain forensics firm identified a delay in freezing Tether’s USDT addresses.
• $78 million lost to malicious actors on Ethereum and Tron since 2017 due to this delay.
• A 44-minute delay was noted between freeze request and confirmation on Tron.
• Tron network saw $49.6 million withdrawn; Ethereum accounted for $28.5 million.
• 4.88% of blacklisted wallets exploited the lag on Tron network.

A report found that delays in freezing Tether’s USDT addresses have allowed bad actors to withdraw over $78 million from Ethereum and Tron networks since 2017, with significant amounts lost due to operational lags in the freeze process.