Tether Freezes $2.5 Million in USDT Following Fantom Foundation Breach

Tether Freezes $2.5 Million in USDT Following Fantom Foundation Breach

Leading stablecoin issuer Tether has taken the measure of freezing accounts holding approximately $2.5 million worth of USDT following a security breach involving the Fantom Foundation.

Tether’s decision comes after an apparent exploit of the cross-chain router protocol Multichain, which resulted in the unauthorized withdrawal of assets valued at nearly $130 million from the Fantom bridge. Notably, this incident impacted a significant portion of the project’s wBTC, USDC, and USDT tokens. However, it is worth mentioning that not all tokens held within the bridge were affected, and no assets were reportedly sold, a departure from the usual pattern observed during such attacks.

In a related development, the Fantom Foundation announced on Friday that Circle had frozen three Ethereum addresses containing $60 million worth of USDC.

Multichain has acknowledged the unusual behavior and has initiated an investigation into the matter.