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Tether’s Freezing Flaw: How $78M Slipped Through Crypto’s ’Laundering Loophole’ Since 2017
Tether’s Freezing Flaw: How $78M Slipped Through Crypto’s ’Laundering Loophole’ Since 2017
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Crypto’s favorite stablecoin has a dirty secret—its anti-fraud tools might be backfiring. Tether’s freezing mechanism, designed to block stolen funds, has let $78 million vanish into the shadows since 2017. Hackers and scammers are exploiting gaps faster than regulators can say ’Know Your Customer.’
How? A mix of delayed freezes, cross-chain hops, and good old-fashioned obfuscation. While Tether boasts transparency, its reactive approach leaves windows wide open—just ask the Lazarus Group.
Another day, another ’decentralized’ finance lesson: if you’re moving dirty money, always bet on the house. Especially when the house runs on USDT.
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