Tether has blocked transfers from addresses associated with the theft of assets from Ledger hardware wallet users. The total value of the frozen USDT is estimated to be nearly $90 million. While the freeze prevents the movement of these funds, it does not automatically return them to the victims.
The incident, which came to light on October 9, 2026, involves Ledger devices purchased through CryptoBilis, an authorized distributor in Southeast Asia. Estimates suggest that total losses from these thefts exceed $86 million, with assets distributed across the Bitcoin, Ethereum, and Tron networks.
Ledger is currently investigating the situation and has advised customers who purchased devices within the last three months to refrain from initializing new hardware. Preliminary findings suggest potential supply chain tampering rather than a vulnerability in the core hardware or systems of the company.
The freeze implemented by Tether applies exclusively to the USDT portion of the stolen assets. Because Bitcoin and other assets operate on decentralized networks without a central issuer, they remain unaffected by this action. Further legal or coordinated efforts will be required to determine if the frozen funds can be recovered.
