Elon Musk Reacts As Tether Blacklists $31.4M USDT Following FTX Hack

Elon Musk has reacted over the alleged Ftxy hack as tether blacklists $31.4M USDT following the hack

iexclusivenews reports that on the evening of November 11, several wallet addresses connected to FTX were discovered transferring millions of dollars’ worth of cryptos without a formal notice. Leading to rumors of both hackers and the start of FTX’s bankruptcy proceedings.

After a short while, FTX on Telegram confirmed that the fund transfers were a result of an ongoing hack.

FTX Telegram admin confirms being hacked. Source: Telegram

Tether proactively blacklisted USDT tokens linked to transactions totaling $31.4 million after FTX confirmed the hack on Telegram, as seen above.

Blockchain researcher ZachXBT noted that the blacklisted USDT tokens were made up of $27.5 million USDT on Solana and $3.9 million USDT on Avalanche (AVAX) (SOL).

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

— Elon Musk (@elonmusk) November 12, 2022

Elon Musk, a multibillionaire businessman who recently bought Twitter in an effort to realize its full potential, acknowledged Twitter’s role in following the developments of the FTX in real time.

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

This online news outlet understands that Tether prevented hackers from transferring the funds to another account or exchanging them for other cryptocurrencies by blocking the allegedly stolen USDT token.

Tether may burn the blacklisted USDT as part of the remedy and distribute identical amounts of the asset to the original owner.

[the_ad id=”41670″]

However, iexclusivenews Nigeria reports that the hacker also took a large number of other crypto assets, including USDP, Ethereum (ETH), Chainlink (LINK), and Ethereum.

None of these ecosystems have yet to step in to stop the theft. Major cryptocurrency exchanges, including Binance, OKX, Kucoin, and Crypto.com, have recently made a commitment to sharing their proof of reserve in an effort to restore investor confidence.

Paolo Ardoino, CTO of Bitfinex, took the initiative in this drive by sharing 135 cold and hot wallet addresses that showed Bitfinex’s proof of reserves.

Investors welcomed the decision, but few community members brought up the fact that Bitfinex’s liability figures were missing, rendering the data unusable for analysis.