Tether blacklists $31.4M USDT following FTX’s alleged hack, Musk reacts

On the evening of Nov. 11, a number of pockets addresses linked to FTX have been discovered transferring tens of millions of {dollars} value of cryptocurrencies with out an official discover — sparking speculations starting from the graduation of FTX’s chapter proceedings to the involvement of hackers. Inside hours, FTX confirmed on Telegram that the fund transfers have been a part of an ongoing hack.

FTX Telegram admin confirms being hacked. Supply: Telegram

Following FTX’s affirmation on Telegram concerning the hack, as proven above, Tether proactively blacklisted $31.4 million value of USDT tokens linked to the transactions. As identified by blockchain investigator ZachXBT, the blacklisted USDT tokens have been made up of $3.9 million USDT on Avalanche (AVAX) and $27.5 million USDT on Solana (SOL).

FTX meltdown/ransack being tracked in real-time on Twitter

— Elon Musk (@elonmusk) November 12, 2022

Billionaire entrepreneur Elon Musk, who not too long ago bought Twitter in hopes of unleashing the platform’s full potential, acknowledged Twitter’s contribution in monitoring down the FTX developments in actual time.

Elon Musk takes a dig at FTX CEO Sam Bankman-Fried. Supply: Twitter

By blacklisting the alleged stolen USDT token, Tether disarmed hackers from siphoning the belongings to a different account or exchanging them for different cryptocurrencies. As a part of the remediation, Tether can burn the blacklisted USDT and reissue equal quantities of the asset to the unique proprietor.

Nevertheless, the hacker additionally stole quite a few different crypto belongings, together with Ethereum (ETH) Chainlink (LINK) and USDP, which is but to see intervention from respective ecosystems.

Associated: FTX-Binance standoff highlights the necessity for clear guidelines — Sen. Lummis

Over the previous few days, main crypto exchanges, together with Binance, OKX, Kucoin and Crypto.com, dedicated to sharing their proof of reserve to regain investor confidence.

Taking the lead on this drive, Bitfinex CTO Paolo Ardoino shared 135 hot and cold pockets addresses revealing Bitfinex’s proof of reserves.

Proof of reserves for @bitfinex
Right here is the listing of the primary Bitfinex walletshttps://t.co/TaS7Vy9qfP

Finex holds:
– 204338.17967717 BTC (amongst prime bitcoin holders)
– 2018.5 L-BTC (Liquid)
– ~1000 BTC on LN ⚡️
– 1225600 ETH (amongst prime ethereum holders)

— Paolo Ardoino (@paoloardoino) November 11, 2022

Whereas the transfer was well-received by traders, few members of the neighborhood identified the shortage of Bitfinex’s legal responsibility figures, which makes the info incomplete for overview.

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