Security Analyst Points Out Vulnerability in Tether's Blockchain Transaction Freezing Process
A blockchain security analyst has pointed out a vulnerability in Tether's transaction freezing process. Darcy, co-founder of FlashRescue, revealed that targeted funds were drained from a wallet while Tether was in the process of freezing it. This criticism highlights a significant time gap between the freeze request and its final blockchain confirmation, which is managed by a multi-signature wallet mechanism.
An analysis of 2,955 Tether freeze events on Ethereum and TRON showed an average delay of 2 hours, 16 minutes, and 15 seconds. During this window, at least 60 addresses managed to completely empty their assets, transferring a total of $20.4 million in USDT, often starting just 14 minutes after the freeze proposal. Another 113 addresses transferred part of their assets, totaling approximately $35.5 million, before the freeze took effect.
A notable public example was Tether's action against Iran's central bank in July. Following OFAC sanctions on four TRON wallets holding over $165 million in stablecoins, Tether froze $131 million, but around $34 million had already been moved by the time of the freeze.
While Tether is often praised for its speed compared to competitor Circle, which faces criticism for inaction and only freezes wallets based on law enforcement or court orders, this execution gap presents a risk. Tether stated it coordinates directly with investigators during active cases and has collaborated with over 340 agencies across 65 countries, helping freeze assets worth over $4.4 billion. However, analysts warn that once stolen funds are mixed with unrelated money on certain addresses, recovery becomes nearly hopeless as Tether rarely freezes pools with unverifiable origins.
cryptonews.ru08/06 20:10
