An individual, who stole about $170,000 worth of NFTs and different assets from the victim, now has their wallet frozen with over $100,000 worth of USDT.
With the help of law enforcement and cyber experts, the victim, of the eth exploit managed to get the hacker’s Tether USDT address blocklisted. This increases the chance of recovering a substantial part of the lost funds.
The individual, known as L3yum on X (previously Twitter), first experienced the loss on March 16. The attacker obtained their hot wallet seed phrase and took away nonfungible tokens (NFTs) connected to Yuga Labs. They also took cryptocurrencies and NFTs from smaller projects, quickly selling or swapping them.
On August 11, in a thread on X, L3yum brought attention to a significant update. The hacker’s USDT address on the Ethereum network was frozen.
L3yum mentioned, “Today, after working with local law enforcement and cyber experts, I managed to freeze the unlawfully acquired funds held in USDT.”
Navigating the Aftermath of the Eth Exploit: Recovery Challenges and Tether’s Procedures
As of now, 90 ETH is worth about $166,000. The frozen wallet has only $107,306 worth of USDT. This means the victim might not recover all their stolen funds.
The prospect of reimbursement for the victim remains uncertain. However, in past occurrences where a USDT address was redlisted under comparable circumstances, Tether undertook the incineration of the redlisted USDT and issued equivalent amounts of the asset back to the original owner.
It’s also noteworthy that the redlisting of a USDT address by Tether usually follows a court directive.
When asked in the comments, L3yum said it’s likely what will happen, but it’s not certain yet.
This is the part I’m unsure about but yeah from my understanding this is how it works and the funds that are blacklisted are essentially burnt. Don’t quote me on that though, but that is my understanding!
We don’t know exactly how the hacker got the seed phrase in March. But back then, people thought the victim might have had their SIM card swapped, accidentally saved the seed phrase on iCloud, or used the wallet on multiple devices.
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