Tether's Blacklisting Delays Lead to $78 Million USDT Transfers

According to Odaily, blockchain compliance firm AMLBot has released a report highlighting delays in Tether's blacklisting process since 2017. These delays have allowed over $78 million in USDT to be transferred before the freeze could take effect. The issue arises from Tether's multi-signature contract mechanism on Ethereum and Tron, which requires two multi-signature transaction confirmations, resulting in an average delay of 44 minutes. During this window, attackers can monitor blacklist submission transactions in real-time and swiftly move assets to evade freezing measures. The report indicates that approximately 170 Tron addresses exploited this delay, with each address transferring nearly $290,000 on average before being officially blacklisted. This incident has raised concerns about the efficiency of Tether's compliance enforcement.