Bitfinex CTO Defends Freezing of Millions of USDT

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Bitfinex (Courtesy: Twitter)
Bitfinex (Courtesy: Twitter)

Following the KuCoin hack, Tether has frozen 20 million USDT sitting on an Ethereum address and Bitfinex froze 13 million USDT on EOS, according to Bitfinex CTO Paolo Ardoino. Another 1 million USDT was frozen on Omni and 1 million USDT on Tron.

In an announcement posted on its website, KuCoin revealed that it is currently monitoring several addresses linked to the hack. It is also collaborating with several exchanges and projects to halt the movement of the stolen coins and recover them where possible.

KuCoin on Sept. 25 suffered a devastating hack, losing an estimated $150 million from its hot wallet. Speaking on his Twitter account yesterday, Ardoino gave several updates regarding freezes of potentially stolen USDT on Omni, TRON and EOS chains, as the crypto ecosystem scrambles to contain the situation.

One trader pointed out that it was a slippery slope for Bitfinex to freeze the USDT, asking what is to prevent them from stopping there. The Bitfinex CTO was quick to defend the move, saying that Tether is a centralized stablecoin with obligations to “users, regulators and law enforcement.”

In the meantime, KuCoin confirmed that it is working with other exchanges to track the stolen funds. These exchanges include Binance, Huobi, OKEx, Bybit, Upbit, Bibox, Gate, MXC, BitMax, BigONE, BKEX, BitZ, HBTC, Hoo, Crypto.com, Bingbon, Renrenbit, LBank, Max/Maicoin, CoinW, Bibo, and Bitrue.