Tether Begins Blacklisting FTX Exploiter's USDT

  • Earlier, the crypto exchange FTX filed for bankruptcy.

  • After the announcement, around $600 million has been transferred from FTX wallets.

  • Later, Tether start blacklisting USDT of FTX exploiters.

12 Nov 2022 By: Sudeep Saxena
Tether Begins Blackl

In response to the unexpected movement of funds out of FTX and 

FTX US wallets, Tether takes a precautionary measure by blacklisting USDT associated with the FTX wallet drainer. 

Almost $600 million in tokens were moved from wallets, with Tether withdrawals swapped to DAI and other tokens swapped to Ethereum. According to an on-chain sleuth, FTX employees acknowledged that they do not recognise transmitted funds.

Tether Blacklists FTX Exploiter's USDT 

Stablecoin Issuer Tether blacklisted the FTX attacker’s $3.9 million USDT on Avalanche and $27.5 million USDT on Solana, according to on-chain data provider.

In a tweet on November 12, PeckShieldAlert confirmed blacklisting USDT on AVAX for FTX Accounts Drainer 0x59ab...32b. PeckShieldAlert also reported the transfer of funds from several FTX wallets to 0x59AB...32b.

Furthermore, many FTX users reported $0 balances in their FTX.com and FTX US wallets. Crypto influencers anticipate fund movement as an insider job as an auto-update is pushed to reveal all private keys.

Sources validated that an on-chain message with the 4byte selector "0x3d24a1ff," which is the hash of the function name "Rug Pull All," was sent to the recipient account. It confirmed that root access was given to someone in a hurry to liquidate funds.

On-chain data reports that funds were moved from FTX and sold through DEX. Currently, UNI, stETH, 1INCH, WBTC, SUSHI, YFI, and LDO with addresses beginning with 0x59ab are available for purchase. Other tokens still in circulation include PAXG, LINK, MATIC, AAVE, SNX, SHIB, and APE.

Furthermore, SRM, MATIC, CHZ, DYDX, BAND, MANA, ENS, CEL, HT, GRT, GALA, CRV, and other tokens have been transferred to the address beginning with 0xd801, including SRM, MATIC, CHZ, DYDX, BAND, MANA, ENS, CEL, HT, GRT, GALA, CRV, and other tokens.

In a tweet, FTX US General Counsel Ryne Miller stated, "Investigating irregularities with wallet movements connected to consolidation of FTX balances across exchanges - uncertain facts as other movements are ambiguous. More information will be provided as soon as it becomes available."

What do you think about Tether’s move to blacklist USDT of FTX exploiters? Share your views in the comment section below.

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