Tether freezes $10 million in USDT linked to $93 million Crypto
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
AI-generated summary based on the linked source; not independently verified. This is not investment advice. Verify market-moving details at the original publisher before acting. See our editorial policy, AI content policy, and financial disclaimer.
Summary
Ledger warns customers who bought devices from authorized reseller CryptoBilis not to use new devices and to transfer funds from already used devices after a theft estimated between $93.2 million and $94.5 million from hundreds of wallets. Ledger confirmed an unauthorized hardware implant in at least one affected device. Tether has frozen $10 million in USDT linked to the theft, and investigations are ongoing.
Why it matters
The source highlights that attackers were able to steal a large sum from wallets connected to Ledger devices, indicating a significant security breach with potential risks for affected users. The freezing of Tether tokens marks an important step since stablecoin issuers can block stolen tokens, unlike other cryptocurrencies. The incident raises concerns about Ledger’s oversight of authorized resellers and hardware security.
Key context
This theft is separate from a prior April phishing campaign involving a fake Ledger Live app that drained $9.5 million; here the attacker accessed private keys directly to empty wallets. The attack involved tampering with the hardware at the reseller level, which Ledger characterizes as confined to CryptoBilis, though some criticize this stance given CryptoBilis was an authorized reseller. Blockchain analytics firms traced stolen funds mostly in USDT and TRON across multiple blockchains.
Key numbers and entities
Ledger, CryptoBilis (authorized reseller), Tether, blockchain analytics firms Bitquery and YFarmX, approximately $93.2 million to $94.5 million stolen, $10 million in frozen USDT, 315 to 521 wallets affected, six to seven blockchains involved.
What remains unclear
Ledger has not confirmed the exact total of stolen funds or disclosed details on the hardware tampering method. It is unknown whether Ledger plans to reimburse affected customers. Tether has not commented on the frozen funds, and the ultimate recovery status of the remaining traced $81 million is pending.