Victim of 90 ETH exploit set to claw funds back after hacker was blacklisted


With the help of police and cyber authorities, a victim of a hack worth 90 Ether (ETH) has gotten the attacker’s Tether (USDT) address blacklisted. As a result, they may be able to get most of their funds back.

The victim, who goes by @l3yum on X (Twitter), was initially drained on March 16 after the hacker managed to get a hold of their hot wallet seed phrase. Several Yuga Labs-related NFTs were stolen, alongside some crypto and other NFTs from smaller projects, and then promptly swapped or sold off.

How To Get Free Crypto  

In an Aug. 11 X thread, L3yum highlighted that the hacker’s Ethereum-based USDT address had been blacklisted, as he noted that: “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 black listed.”

At the time of writing, 90 ETH is equivalent to roughly $166,000 and the blacklisted wallet has $107,306 worth of USDT locked up in it, suggesting the victim may not get the full value of their stolen funds back.

While it is also not yet 100% certain if the victim will be reimbursed, in previous instances in which a USDT address has been blacklisted under similar circumstances, Tether has burned the blacklisted USDT and re-issued equal amounts of the asset to the original owner.

It is also worth noting that the blacklisting of a USDT address by Tether generally comes after a court order.

Coinbase Banner  

Related: How easy is a SIM swap attack? Here’s how to prevent one

When asked if this was the case in the comments, L3yum confirmed this was the likely path forward, but suggested it hasn’t been confirmed 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!” he wrote.

It is not entirely clear how the hacker got access to the seed phrase in March, however the general thought at that time was that the victim had either been SIM-swapped, mistakenly had their seed phrase backed up on iCloud, or had been using the wallet across several devices.

Magazine: NFT Collector: On-chain music sounds off with latest raise, artistic duo Hackatao find their lane

Go to Source
Author: Brian Quarmby

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

FreeBitcoin Banner  

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.