Tether Freezes $2.5 Million in USDT Linked to Fantom Foundation Breach
Tether, the stablecoin issuer, has taken the step of freezing $2.5 million worth of USDT due to its connection to a suspected exploit of the cross-chain router protocol Multichain. This action by Tether aims to safeguard the affected funds and prevent any potential misuse or unauthorized access.
A recent attack on Multichain’s Fantom bridge resulted in an estimated loss of almost $130 million, as assets were siphoned from multiple bridges. The majority of the project’s wBTC, USDC, and USDT tokens were affected, while some tokens remained untouched.
Surprisingly, the stolen assets were not immediately sold, which is typically observed in such attacks. The incident raises concerns about the security of decentralized bridges and the need for enhanced measures to safeguard digital assets.
Circle, the company behind USDC, has locked three Ethereum addresses holding $60 million worth of USDC, according to the Fantom Foundation.
The reasons for this freezing action by Circle are undisclosed. This event brings attention to the centralized control and potential limitations of stability in the cryptocurrency ecosystem.
Multichain has acknowledged unusual activity and is currently conducting an investigation into the matter.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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