Tether blacklist delay allowed $78M in illicit USDT transfers — Report

A delay in Tether’s USDT blacklisting process allowed over $78 million in illicit funds to evade freezing, according to an AMLBot report.

A lag in Tether’s wallet blacklisting process allowed over $78 million in illicit funds to be moved before enforcement actions took effect, according to a new report from blockchain compliance company AMLBot.

Tether’s address blacklisting becomes effective only after a considerable delay from when the process is initiated on Ethereum and Tron, according the report published May 15.

“This delay originates from Tether’s multisignature contract setup on both Tron and Ethereum, transforming what should be an immediate compliance action into a window of opportunity for illicit actors,“ the report reads.

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