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Just In: Tether Freezes Attacker’s Wallet in Ledger Library Exploit

Tether and Ledger join forces to thwart a cyberattack on DeFi, freezing hackers' wallet and reinforcing blockchain security.
Just In: Tether Freezes Attacker’s Wallet in Ledger Library Exploit

Tether has effectively immobilized significant funds linked to a recent cyberattack on Ledger’s code library. This decisive move underscores the ongoing battle against cybercriminals in the blockchain space. Tether’s Chief Technology Officer, Paolo Ardoino, announced the freezing of an attacker’s address that siphoned approximately $483,000 from various protocols, as per data from DeBank.

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Details of the Compromised Assets

Among the stolen assets were $44,000 in USDT, Tether’s stablecoin. Tether has barred any further USDT transactions from this address by freezing the wallet, though other digital asset transactions remain possible. Notably, the attacker’s wallet interacted with the notorious AngelDrainer phishing group, including a transaction involving 4.334 ETH.

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Ledger’s Vulnerability and Response

Ledger, a leading hardware wallet provider, suffered a significant setback when its Ledger ConnectKit library, a critical code repository, was compromised. The breach, which originated from a phishing attack on a former Ledger employee, resulted in the injection of malicious code. 

Consequently, the front-ends of several decentralized finance (DeFi) protocols were left exposed to potential exploits. In response, DeFi platforms such as Kyber and RevokeCash temporarily disabled their front-ends, while Sushi Swap’s CTO Matthew Lilley advised users to avoid all dapp interactions.

Prompt Mitigation and Collaboration

Ledger has since released an update, Ledger Connect Kit version 1.1.8, to address the security flaw. The malicious version affected versions 1.1.5 to 1.1.7, utilizing a rogue WalletConnect project to redirect funds to the hacker’s wallet. Ledger’s team deployed a fix within 40 minutes of being alerted, effectively limiting the malicious file’s active period to about 5 hours. The window for fund drainage was even narrower, lasting less than two hours.

Ledger’s swift action, combined with the support from WalletConnect service, Tether, Chainalysis, and on-chain investigator ZachXBT, exemplifies the strength of collaboration in the crypto community. Such partnerships are crucial in tackling the sophisticated threats that increasingly target the world of digital assets.

Read Also: Cardano Users Warned Against Fake ADA Rewards Scam

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Kelvin Munene Murithi

Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary . With a Bachelor's degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets. His work has been featured across top industry publications such as Coingape, Cryptobasic, MetaNews, Cryptotimes, Coinedition, TheCoinrepublic, Cryptotale, and Analytics Insight among others, where he consistently provides timely updates and insightful content. Kelvin’s focus lies in uncovering emerging trends in the crypto space, delivering factual and data-driven analyses that help readers make informed decisions. His expertise extends across market cycles, technological innovations, and regulatory shifts that shape the crypto landscape. Beyond his professional achievements, Kelvin has a passion for chess, traveling, and exploring new adventures.

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and 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.
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