Tether blacklist processing delays caused $78 million USDT to not be frozen in time

Odaily News Blockchain compliance company AMLBot released a report stating that Tether had delays in blacklisting suspected addresses, resulting in more than $78 million in USDT being transferred before the freeze took effect. The delay stems from Tethers multi-signature contract mechanism on Ethereum and Tron. The blacklisting process requires two multi-signature transaction confirmations, with an average time difference of 44 minutes. During this window period, attackers can monitor blacklist submission transactions in real time and quickly transfer assets to circumvent freezing measures. The report pointed out that since 2017, about 170 Tron addresses have taken advantage of this delay, with an average of nearly $290,000 per address transferred before being officially blacklisted. The incident has raised questions about the efficiency of Tethers compliance enforcement. (Cointelegraph)