Claim $500Just-In: Tether Starts Blacklisting USDT Of FTX Exploiter
In response to the sudden movement of funds out of FTX and FTX US wallets, Tether took a protective measure by blacklisting USDT related to the FTX wallet drainer. Almost $600 million in tokens were transferred out of wallets with stablecoins withdrawals swapped from Tether to DAI and other tokens swapped to Ethereum. On-chain sleuth ZachXBT asserts FTX employees confirmed that they don’t recognize transferred funds.
Tether Blacklists FTX Exploiter’s USDT
Stablecoin issuer Tether blacklisted $3.9 million USDT on Avalanche (AVAX) and $27.5 million USDT on Solana (SOL) of the FTX attacker, reported on-chain sleuth ZachXBT.
PeckShieldAlert in a tweet on November 12 also confirmed blacklisting USDT on AVAX related to FTX Accounts Drainer 0x59ab…32b. PeckShieldAlert also reported the movement of funds from multiple FTX wallets to 0x59AB…32b.
Moreover, many FTX users confirmed seeing $0 balances in their FTX.com and FTX US wallets. Crypto influencers expect the movement of funds as an insider job as an auto-update pushed to leak all private keys.
Foobar confirmed that somebody sent an on-chain message to the recipient account with 4byte selector “0x3d24a1ff”, which is the hash of the function name “Rug Pull All.” It confirmed the root access has been shared with someone rushing to liquidate funds.
On-chain data indicates that funds were transferred from FTX and sold through DEX. Currently, UNI, stETH, 1INCH, WBTC, SUSHI, YFI, and LDO with addresses starting with 0x59ab are sold. Other tokens including PAXG, LINK, MATIC, AAVE, SNX, SHIB, and APE are still held.
In addition, FTX has 166 million US dollars of funds transferred to the address starting with 0xd801, including SRM, MATIC, CHZ, DYDX, BAND, MANA, ENS, CEL, HT, GRT, GALA, CRV, and other tokens.
FTX US General Counsel Ryne Miller in a tweet said:
“Investigating abnormalities with wallet movements related to consolidation of ftx balances across exchanges – unclear facts as other movements not clear. Will share more info as soon as we have it.”
Elon Musk Reacts To FTX Crisis
Elon Musk tracking the FTX crisis also recognized Twitter’s contribution in tracking developments related to FTX in real-time. He also confirmed completing work on eliminating bots and spam on Twitter.
“FTX meltdown/ransack being tracked in real-time on Twitter.”
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Peter Schiff Warns Bitcoin Could Mirror Silver’s Rise In Reverse
- Trump Declares Tariffs Creating “Great Wealth” as Fed Rate Cut Odds Collapse to 14%
- Grok AI: Post-2020 Gold & Silver Peak Sparked Epic Gains in BTC, NASDAQ, and S&P
- Fed Pumps $2.5B Overnight—Will Crypto Market React?
- Crypto-Based Tokenized Commodities Near $4B Milestone as Gold and Silver Hit Record Highs
- Pi Network Price Holds $0.20 After 8.7M PI Unlock, 19M KYC Milestone-What’s Next?
- XRP Price Prediction Ahead of US Strategic Crypto Reserve
- Ethereum Price Prediction Ahead of the 2026 Glamsterdam Scaling Upgrade – Is $5,000 Back in Play?
- Cardano Price Eyes a 40% Surge as Key DeFi Metrics Soar After Midnight Token Launch
- FUNToken Price Surges After MEXC Lists $FUN/USDC Pair
- Bitcoin Price on Edge as $24B Options Expire on Boxing Day — Is $80K About to Crack?
