Tether's wallet blacklisting process faced a lag, enabling over $78 million in illicit funds to be transferred before enforcement. A report by AMLBot revealed that Tether's blacklisting on Ethereum and Tron experiences delays due to multisignature contracts. The process involves warning transactions before actual blacklisting, creating a window for asset movement. This delay was exploited by attackers, withdrawing millions during the gap. Tether defended the delay, citing a governance model for responsible freezes. Despite freezing billions successfully, questions arise on the effectiveness of enforcement. The report highlights concerns over the speed of actions. Tether's collaboration with law enforcement aims to enhance freezing procedures. The article also mentions a joint effort with Tron and TRM Labs to freeze illicit USDT. The delay loophole on Tron is noted, raising doubts on the system's security measures. Read more AI-generated news on: https://app.chaingpt.org/news

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