In collaboration with the police and cyber authorities, a victim of a hack valued at 90 Ether (ETH) has successfully blacklisted the Tether (USDT) address of the attacker. This action may enable the victim to recover most of their stolen funds. The incident occurred on March 16, when the hacker obtained access to the victim’s hot wallet seed phrase. The hacker then proceeded to steal various Yuga Labs-related NFTs, as well as crypto and other NFTs from smaller projects, before quickly swapping or selling them.
In a series of tweets on August 11, the victim, known as @l3yum on Twitter, announced that the hacker’s Ethereum-based USDT address had been blacklisted. @l3yum expressed gratitude towards the police and cyber team in their country, stating, “Today after working with the police and cyber team in my country, I was able to get the stolen funds sitting in USDT frozen and blacklisted.” This development raises hopes that the victim may be able to recover a significant portion of their stolen assets.
As of now, the value of 90 ETH is approximately $166,000. The blacklisted wallet holds $107,306 worth of USDT, suggesting that the victim may not be able to retrieve the full value of their stolen funds. However, in similar cases where a USDT address has been blacklisted, Tether has burned the blacklisted USDT and reissued an equivalent amount to the original owner. It is important to note that Tether typically blacklists a USDT address only after receiving a court order.
When asked about the possibility of reimbursement in the comments, @l3yum confirmed that this was the likely course of action, although it had not been officially confirmed yet. @l3yum stated, “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!”
The method through which the hacker gained access to the seed phrase in March remains unclear. However, at that time, it was speculated that the victim may have fallen victim to a SIM swap attack, backed up their seed phrase on iCloud unknowingly, or used the wallet across multiple devices.
This incident serves as a reminder of the importance of maintaining strong security practices in the crypto space. It also highlights the potential risks involved in storing valuable assets in online wallets. It is advisable for users to utilize cold storage options, such as hardware wallets, to enhance the security of their funds. Additionally, implementing measures like two-factor authentication and regularly updating security protocols can help safeguard against potential hacks and unauthorized access.
Overall, the collaboration between the victim, law enforcement, and cyber authorities in blacklisting the attacker’s USDT address represents a positive step towards recovering stolen assets in the crypto space. It is a testament to the growing efforts within the industry to protect users and hold hackers accountable for their actions.
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