Key Takeaways
- Tether takes decisive action, freezing $2.5 million in USDT following Circle’s move and the Multichain breach.
- Multichain breach prompts Tether to freeze funds as a precautionary measure, ensuring compliance and protecting users’ assets.
- The actions of Tether and Circle underscore the growing need for enhanced security measures and regulatory oversight in the crypto industry.
In the wake of Circle’s recent move to halt USDT support, Tether, one of the largest stablecoin providers, has taken decisive action by freezing $2.5 million worth of USDT (Tether). This action comes in response to suspicious activities linked to the Multichain breach, which has led to abnormal outflows totalling approximately $125 million in multi-chain assets across multiple wallets. The severity of the situation has prompted Tether to act swiftly and assertively.
The Multichain breach, a recent incident that has sent shockwaves through the crypto industry, exposed vulnerabilities within the decentralized cross-chain bridge’s infrastructure. The breach resulted in unauthorized access to funds and facilitated the abnormal outflows of approximately $125 million in multi-chain assets. These assets were subsequently transferred to various wallets, raising concerns about the security and integrity of the affected assets.
Multichain, a decentralized cross-chain bridge, acknowledged the breach on its official Twitter account, stating that services have been halted until further notice as they investigate the breach and implement necessary security measures to prevent future incidents.
Following the Multichain breach numerous blockchain companies like Ankr suspended incentivizing pools. Moreover, Circle, the company behind the USDC stablecoin, also took action to address the situation.
In response to the breach, Circle made the decision to freeze three Multichain addresses holding a total of 65 million assets, including 63.2 million USDC. This move by Circle raised concerns within the crypto community and served as a catalyst for Tether’s decision to take similar measures.
Circle’s decision to freeze the Multichain addresses was a proactive step to protect the integrity of their stablecoin operations and mitigate potential risks associated with the breach.
In light of the Multichain breach, Tether, one of the leading stablecoin providers, has immediately addressed the situation. Tether has identified two accounts that received funds from Multichain’s MPC (Multichain Party Contract) address, amounting to more than $2.5 million in USDT. These accounts are currently flagged as “Multichain Suspicious Addresses” by Etherscan, a popular blockchain explorer.
Tether’s decision to freeze the funds in these accounts is a precautionary measure aimed at preventing any further unauthorized transactions and protecting the assets of its users. By taking this proactive step, Tether aims to mitigate potential risks and ensure the security and stability of its stablecoin operations.
Source
https://twitter.com/WuBlockchain/status/1677474800166637568?s=20
https://twitter.com/MultichainOrg/status/1677180114227056641?s=20