Tether Freezes $2.5 Million of USDT Transferred from Multichain

Tether, the stablecoin issuer, has taken action and frozen $2.5 million worth of USDT. This move comes after a potential exploit of the cross-chain router protocol called Multichain.

Apparently, Multichain’s Fantom bridge was attacked and nearly $130 million worth of assets were siphoned from a number of bridges. Interestingly, not all tokens were taken, and the assets were not sold, which is usually the case during such attacks.

On Friday, the Fantom Foundation said that Circle had frozen three addresses containing $60 million worth of USDC on Ethereum.

The world’s biggest stablecoin issuer has recently disclosed its plans to expand into Kava (KAVA), an interoperable layer-1 blockchain.

Tether (USDT) has stated in a press release that its dollar-pegged cryptocurrency will soon be available on the Kava network, which has caused a surge in the value of the decentralized finance (DeFi) platform.

As of writing this, KAVA is being traded at $0.934, which marks a considerable 12.9% increase in the past 24 hours.

Paolo Ardonio, the chief technology officer (CTO) of Tether, commended the network’s security in the press release.

“We’re thrilled to be launching USDT on Kava, offering its strong community access to the world’s first, most stable, most trusted, and most widely used stablecoin. The Kava network is a unique and widely followed blockchain with a robust track record of four years with zero security issues, which is essential to protecting USDT users.”

There have been rumors about Tether’s exposure to Chinese securities, but the company has clarified that its holdings were primarily in the banking sector and have always been liquid and from reputable companies. Additionally, Tether has reduced its exposure to Chinese commercial paper.

“Tether’s exposure to Chinese commercial paper was predominantly in the banking sector but all Chinese paper held was liquid and issued by large and well-known issuers in the international commercial paper market.”