The Circle and Tether stablecoin systems were linked to the Bitget hack, but most of the money got away.
#Eight hundred and eighty thousand#The stablecoin#Bitch#The Circle#Hacking the code
What's going on?
Circle issuersUSDC and Tether issuersUSDT have added wallets linked to the hacking of trade backed Bitget into black accounts, rendering stablecoins roughly99,990 USDC and218,023 USDT (approximately$318,000 in total) unusable at a virtual contract level.
According to Blockchain Circle data, the transaction was executed at 05:00 UTC on Friday using a freeze function embedded in the token's contract.USDC With the address being tagged as " Bitget Exploiter 8" on Etherscan , about seven hours later Tether followed by the signatory confirming the deal via multisig wallet to add the same address into its black account.USDT
Why did you only save one piece?
The answer lies in a key limitation of stablecoin issuance: token issuers can blacklist their own tokens, but no one can issue Ethereum .
The encrypted wallet also holdsETH approximately 170 units that have not been touched, and data from blockchain trackers indicates that other addresses associated with the attacker still hold ETH more63,000 units that no token issuer has authority to touch.
The attacker seems to have hastily converted the stolen asset into a stablecoinETH before the issuer intervenes, collecting all of its stolen tokens in new wallets and exchanging them for stablecoins within minutes.
Overview of the Bitget hack
The breach was just a small footprint in one of the year's biggest trade-backed hacks, pulling out hundreds of billions of dollars with an initial estimate of around $387 million. Analysts point to North Korea's Lazarus Group as possibly behind it.
Gracy Chen, CEO of Bitget , stated that an attacker breached the backend system in Trader's wallet infrastructure by tampering with transaction data to trigger unauthorized transfers, confirming that a private key ( private key ) had not been compromised.
How does crypto affect users?
This rapid blacklisting was seen as a faster response than many incidents in the past, but it also reignited an argument about centralized authority that stablecoin issuers have over assets claimed to be permissionless, which is something usersUSDC andUSDT should understand: these stablecoins come with the ability to specify at the contract level,ETH whereas on-chain assets do not have such mechanisms.
It's a warning.
This article is for informational and information purposes only. It does not recommend investing in or offering to buy any asset. Digital assets and cryptocurrencies have a very high price impact, and can lose value significantly within a short period of time. Readers should carefully study the data, consider the associated risks such as hacking risk and regulatory risk before making an investment decision, and use their intuition to make rational decisions on their own.
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