Tether news

A wallet linked to thefts from Ledger hardware wallet users converted 2 million USDT into USDD after Tether blacklisted addresses tied to the stolen funds. On-chain investigators estimate $86 to $93 million was drained from over 300 wallets across Ethereum, Tron, and Bitcoin, with Tether freezing around $10 million in USDT. The suspected thief used SUN.io to swap about 14.7 million USDT for roughly 14.6 million USDD, moving assets beyond Tether's freeze controls, while about 430 ETH was reportedly routed through Tornado Cash, some ending up in Binance hot wallets. Tagged wallets still hold approximately $70.6 million in crypto, including ETH, BTC, USDD, and frozen USDT. The thefts are linked to Ledger devices purchased through Southeast Asian reseller CryptoBilis, which operates in Indonesia, Malaysia, and the Philippines. Ledger has suspended sales through CryptoBilis and is investigating a potential supply-chain compromise, advising recent buyers to move funds to new wallets with fresh seed phrases. The operation's targeted nature, sorting assets by freeze risk, highlights a gap in stablecoin freeze powers, as USDD remains outside Tether's reach. This follows a September 2026 case where a sanctioned marketplace shifted to USDD after Tether froze over $45 million in linked USDT.

Suspected Ledger wallet thefts are approaching $90 million, with Tether freezing USDT linked to the incident, according to blockchain investigators. Ledger suspended sales through Southeast Asian reseller CryptoBilis and advised customers who purchased devices in the past 90 days to secure their crypto with fresh wallets. The company is investigating whether the compromise stemmed from counterfeit hardware or physical tampering. On-chain investigators traced funds from hundreds of victim wallets to addresses on Bitcoin, Ethereum, and Tron. While Tether's freeze can prevent movement of USDT, it cannot freeze native assets or automatically return funds. The recovery of the remaining assets depends on cooperation from exchanges and authorities, as investigators have yet to determine the full scope or method of the attack.

THORChain technical co-founder Chad Barraford accused stablecoin issuer Tether of blacklisting the network's USDT vaults, freezing about 1.45 million USDT across four wallets, then unfreezing them hours later without explanation. Barraford said there had been no communication from Tether before the action and hoped it was made in error. The incident follows recent lawsuits against Tether, including one from Conduit Technology over a $2.76 million freeze tied to a Brazilian investigation, and a suit from two Thai nationals over a $42.4 million freeze after an alleged informal US request.

On October 9, 2026, Tether blacklisted four THORChain vault addresses on the Tron network, freezing approximately 1.45 million USDT and disabling the protocol's Tron-based swaps and liquidity operations. The blacklist was lifted about three hours later, restoring balances and resuming trading, with no hacks or thefts reported. THORChain co-founder Chad Barraford said the team received no prior warning. This incident highlights the issuer risk facing liquidity providers, as Tether's blacklist function can freeze assets in decentralized protocols. With 93% of THORChain's Tron assets concentrated in four vaults, a single action can disrupt operations. The episode also coincides with a lawsuit alleging Tether improperly froze $2.76 million, and follows THORChain's decision not to block addresses linked to a recent hack. Nineteen other wallets remain blacklisted.

Tether has frozen nearly $90 million in USDT linked to thefts from Ledger hardware wallet users, according to The Defiant. The freeze blocks outgoing transfers from implicated addresses but does not return funds to victims. The incident surfaced on October 9, 2026, and centers on devices bought from CryptoBilis, an authorized distributor in Southeast Asia. Estimated losses exceed $86 million, spread mostly across Bitcoin, Ethereum, and Tron networks. Ledger is investigating and has advised customers who bought devices in the last three months not to initialize new hardware or move assets carefully. The company also urged CryptoBilis to stop sales and shipments. The exact cause is unconfirmed, with speculation pointing to supply chain tampering rather than a core hardware flaw. Tether's freeze applies only to USDT; Bitcoin lacks a central issuer to intervene. For victims, the freeze is a step in a longer process that may require legal action for fund recovery.

Tether blacklisted four THORChain vault addresses on the Tron network on October 9, 2026, freezing approximately 1.45 million USDT. The move immediately halted THORChain's Tron-based cross-chain swaps and liquidity-provider operations. THORChain co-founder Chad Barraford said the team received no advance warning from Tether before the freeze. THORChain currently secures about $47.9 million in total liquidity, with the frozen USDT representing a small portion but on a critical route for stablecoin access. Tether's TRC-20 contract includes a blacklist function, which it has used on over 11,000 addresses historically. This case is notable because it targeted shared protocol infrastructure rather than individual wallets. The incident follows THORChain's late-September decision not to block addresses linked to the $387.5 million Bitget hack, though no connection to the freeze has been established. For THORChain and DeFi, it highlights a structural vulnerability: protocols can refuse to censor at their own layer but remain subject to censorship at the asset issuer level. No recovery timeline or explanation from Tether has been announced.

Senator Richard Blumenthal has requested records from Cantor Fitzgerald by October 23 regarding its business with Tether, the issuer of USDT. The inquiry covers reserve custody fees, ownership stakes, sanctions screening, and communications with officials, following a Democratic staff report alleging extensive USDT use by Iran-linked wallets. The letter distinguishes Cantor's role as a reserve custodian from Tether's authority to freeze on-chain addresses, noting that a custodian sees reserve assets, not token transactions. Tether says it helped freeze roughly $550 million tied to Iran in 2026, while the senator's office estimates Cantor's 5% stake at $10 billion, which the letter frames as an estimate, not a confirmed valuation. The inquiry seeks to clarify the contractual division of labor between custody and token administration, as well as the timeline of actions related to flagged addresses. A response to the request, which is not a finding of wrongdoing, will be closely watched, along with any subsequent statements from Treasury or the Justice Department.

U.S. Senator Richard Blumenthal has demanded Cantor Fitzgerald disclose its financial ties to Tether, including a reported $10 billion stake and payments to Commerce Secretary Howard Lutnick, by October 23, 2026. The inquiry follows allegations that Tether's USDT stablecoin is widely used in Iran's financial networks. The senator seeks details on Cantor's earnings, custody services, sanctions monitoring, and Lutnick's ownership transfer. Blumenthal alleges Lutnick received over $250 million after President Trump's return to office, including a $192 million distribution from Cantor. He also questions whether the bank requires independent audits of Tether's reserves and whether it has considered ending the partnership. Tether disputes the allegations, stating it helped freeze approximately $550 million in Iran-linked USDT during 2026. The senator's request is part of a congressional inquiry and does not constitute a formal finding of wrongdoing.

US Senator Richard Blumenthal, the ranking Democrat on the Senate Permanent Subcommittee on Investigations, has launched a probe into Cantor Fitzgerald's ties to Tether. In a letter to Cantor chairman Brandon Lutnick, Blumenthal demanded records on the firm's partnership with the stablecoin issuer, including compliance monitoring and communications involving Commerce Secretary Howard Lutnick. Blumenthal alleged the relationship profits at the expense of national security, noting Cantor's 5% stake in Tether has grown in estimated value from $600 million to $10 billion since President Trump returned to office, with Lutnick receiving over $250 million in that period. The inquiry follows a report accusing Tether of enabling Iran's shadow banking, prompting Blumenthal to urge Treasury and Justice Department investigations. Tether said it has frozen nearly $550 million in Iran-linked tokens this year. Blumenthal has requested a response by Oct. 23.

Democratic Senator Richard Blumenthal released a staff report on September 28, 2026, alleging that Tether's USDT has become a primary payment rail for Iran-linked networks and sanctioned entities. The report, titled "Tethered to Terrorism," reviewed 846 wallets designated by OFAC and Israel's counter-terror financing bureau, finding that 84% relied heavily on USDT. It also singled out two sanctioned Iranian oil smugglers who moved over $603 million in USDT through networks connected to Hezbollah and Houthi factions. Blumenthal is also probing Tether's relationship with Cantor Fitzgerald, which holds a 5% equity stake and manages a substantial portion of Tether's reserves. He raised concerns about potential self-dealing due to Cantor's dual role as shareholder and reserve manager. The senator formally asked Treasury Secretary Scott Bessent and Attorney General Todd Blanche to investigate Tether's sanctions compliance and anti-money laundering practices. Tether says it cooperates with law enforcement, citing its freezing of about $550 million in Iran-affiliated USDT during 2026. However, critics note the two smugglers alone moved over $603 million, suggesting enforcement is reactive. No formal investigation has been announced. The scrutiny could affect USDT liquidity and adoption, and potentially lead to stricter operational rules for all stablecoins if systemic issues are uncovered.