- Tether’s freeze delays exploited, enabling laundering of $78 million USDT.
- AMLBot identified issues causing multi-signature delay.
- Demand grows for Tether to improve security measures.
Tether is under scrutiny after vulnerabilities in its multi-signature wallet freeze mechanism allowed criminals to launder $78 million since 2017.
The freeze delay exploited by criminals reveals significant security concerns for USDT holders, impacting market trust and raising calls for immediate action from both Tether and regulators.
A collaborative initiative, T3 FCU, was launched by Tether, TRON, and TRM Labs to bolster the fight against crypto-related crimes. Blacklisted wallets on Ethereum and Tron were analyzed, revealing the delay in execution provided criminals a window to operate freely.
Effects extend beyond Tether, impacting market confidence in stablecoins. Despite efforts by Tether, vulnerabilities are apparent in handling multi-signature wallet freezing, affecting Ethereum and Tron networks. “Through T3 FCU, we are demonstrating that bad actors have fewer and fewer places to hide.”
Regulatory attention on Tether’s protocols is expected to intensify. Calls for a revised approach are evident as scrutiny grows in maintaining the trustworthiness of crypto networks. Technological upgrades may be necessary to ensure rapid enforcement and bolster user trust.
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