With the help of the police and cyber authorities, a victim of a hack worth 90 Ether (ETH) got the Tether (USDT) address of the attacker blacklisted. As a result, they can get most of their funds.
[2023/08/11 17:30] USDT blacklisted 0x788bc56b67c289399cd6e2022f0d76484f04724a in block 17893148 https://t.co/WipjkHXFGp
— usdt blacklist (@usdtblacklist) August 11, 2023
The victim, who goes by @l3yum on X (Twitter), first ran out on March 16 after the hacker obtained their hot wallet seed phrase. Many NFTs related to Yuga Labs were stolen, along with some crypto and other NFTs from smaller projects, and then bought or sold.
On an August 11 X dizzinessL3yum emphasized that the Ethereum-based hacker’s USDT address was blacklisted, as he noted that: “Now after working with the police and cyber team in my country, I got the stolen funds sitting in USDT which is frozen and black listed.”
The people I work with are amazing
The original police officer I dealt with didn’t even know anything about crypto other than hearing about it, but after a few phone calls just by the way he spoke I knew he was learning and really care
– L3yum (@l3yum) August 11, 2023
At the time of writing, 90 ETH is equivalent to roughly $166,000 and the blacklisted wallet has $107,306 worth of USDT locked in it, suggesting that the victim may not get the full amount of their stolen funds.
While it is also not 100% certain whether the victim will be compensated, in previous instances where a USDT address was blacklisted under similar circumstances, Tether burned the blacklisted USDT and reissued the same which is the original owner’s asset value. .
It’s also worth noting that blacklisting a USDT address by Tether usually comes after a court order.
Related: How easy is the SIM swap attack? Here’s how to prevent one
When asked if this was the case in the comments, L3yum confirmed that this is the likely way forward, but suggested that it has yet to be confirmed.
“This is the part I’m not sure about but yes from my understanding this is how it works and the funds that were blacklisted actually got burned. Don’t quote me on that, but that’s my understanding!” he wrote.
It’s not entirely clear how the hacker gained access to the seed word in March, though the general THINK at that time the victim bought a SIM, mistakenly backed up their seed phrase in iCloud, or used the wallet on multiple devices.
Another member of our community was compromised yesterday. $70k+ lost.
11 Eth, a Mutant, a Koda, etc. While the exact attack that @l3yum It’s not clear, we’ve narrowed it down to a few possibilities – and it can be prevented by something
In hardware wallets 1/
— quit (,) (@0xQuit) March 15, 2023
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