Tether freezes $10 million in USDT! Losses from Ledger wallet theft approach $93 million
This incident once again shows that after crypto assets are stolen, the ability to track and freeze the funds quickly can directly affect the chances of recovering the losses.
According to an investigation published on October 9 by blockchain analytics firm Bitquery, the Ledger-related theft involved approximately 311 wallets across five blockchains, with estimated losses of $92.9 million. Tether has frozen approximately $10 million in USDT.
Here are a few key points to note 👇
1️⃣ This is not a confirmed Ledger system vulnerability
The incident currently involves some customers of CryptoBilis, a Ledger distributor in Southeast Asia. Ledger is investigating and has asked the distributor to suspend sales and shipments.
The specific cause of the theft has not yet been confirmed, so it cannot be directly concluded that the Ledger hardware itself has a vulnerability.
2️⃣ How much did Tether freeze?
Bitquery's tracking found that Tether froze approximately $10 million in USDT across 20 wallets, preventing those addresses from transferring the frozen USDT.
However, a freeze does not mean the funds have already been returned to victims; further verification and coordination will still be needed.
3️⃣ The incident has reignited a debate
USDT operates on a blockchain, but its issuer can freeze tokens held at specific addresses.
This can help combat theft and money laundering, but it also means stablecoins are not entirely free from centralized control. For users, the balance between security and control over their assets is always worth considering.
My take: Security in the crypto industry is about more than whether a wallet's private keys have been exposed. It also involves whether stolen funds can be tracked quickly, whether exchanges and issuers can cooperate, and whether victims can actually recover their assets.
A final reminder: If you recently purchased a Ledger hardware wallet through a related distributor, keep a close eye on official Ledger security announcements, and never enter or share your recovery phrase indiscriminately.
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