Crypto Briefing • October 10th 2026, 2:16 AM
Ledger theft-linked funds shift from USDT to USDD to dodge Tether freezes
Key Summary
A wave of thefts from Ledger hardware wallet users has led to a large-scale money laundering operation, with approximately $86 to $93 million drained from over 300 wallets. The stolen funds were converted into USDD to evade Tether's freeze controls, highlighting a gap in stablecoin freeze powers.
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Ledger theft-linked funds shift from USDT to USDD to dodge Tether freezes
The Theft
A wallet tied to a wave of thefts from Ledger hardware wallet users converted 2 million USDT into USDD. This apparent goal was to move the money beyond Tether's ability to freeze it.The Scope
On-chain investigators say approximately $86 to $93 million was drained from more than 300 wallets.The Investigation
Investigators traced the stolen funds on October 9, 2026, across several blockchains, including Ethereum, Tron, and Bitcoin. Specter and MistTrack were among the on-chain sleuths following the trail.The Move
Tether moved first. The stablecoin issuer blacklisted more than 20 addresses linked to the stolen assets and froze around $10 million in USDT. The suspected perpetrator adjusted quickly. Using SUN.io, they swapped roughly 14.7 million USDT into roughly 14.6 million USDD on October 9. The swap gave up a little value, but USDD sits outside Tether's freeze controls.The Ethereum Side
About 430 ETH, valued at roughly $1.07 million, was reportedly run through Tornado Cash. Some of those funds reportedly ended up in Binance hot wallets.The Ledger Connection
The thefts have been linked to Ledger hardware wallets bought through CryptoBilis, a reseller based in Southeast Asia. CryptoBilis operates in Indonesia, Malaysia, and the Philippines.The Aftermath
Ledger has opened an investigation into a potential supply-chain compromise. The company has also suspended all sales through CryptoBilis.The Implications
Draining more than 300 wallets, then sorting assets by freeze risk and moving each type through a different channel, points to planning. Tether froze USDT, and the attacker turned the remaining USDT into an asset Tether can't touch. ETH went through a mixer. The research describes the operation as sophisticated and targeted rather than random.The Future of Stablecoins
The USDT-to-USDD swap highlights a real gap in stablecoin freeze powers. Tether's blacklist only covers USDT. In this case, Tether's freezes caught around $10 million, while about $14.6 million in USDD slipped out of reach.The Centralized Platforms' Role
Funds reportedly reaching Binance hot wallets puts centralized platforms in a position to act if they can identify and hold the deposits.#Bitcoin#US#Crypto#SEC#Tether#USDD#USDT