Wallet addresses linked to FTX were found transferring millions of dollars’ worth of cryptocurrencies without an official notice creating speculations ranging from the commencement of FTX’s bankruptcy proceedings to the involvement of hackers. FTX confirmed on Telegram that the fund transfers were part of an ongoing hack.
Following FTX’s confirmation on Telegram about the hack, Tether proactively blacklisted $31.4 million worth of tokens linked to the transactions. The blacklisted USDT tokens were made up of $3.9 million USDT on Avalanche and $27.5 million USDT on Solana.
Billionaire entrepreneur Elon Musk, who recently purchased Twitter in hopes of unleashing the platform’s full potential, acknowledged Twitter’s contribution in tracking down the FTX developments in real time. By blacklisting the alleged stolen USDT token, Tether disarmed hackers from siphoning the assets to another account or exchanging them for other cryptocurrencies. As part of the remediation, Tether can burn the blacklisted USDT and reissue equal amounts of the asset to the original owner.
However, the hacker also stole numerous other crypto assets, including Ethereum, Chainlink and USDP, which is yet to see intervention from respective ecosystems.
