Decentralized Exchange FixedFloat Faces '$2.8 Million' Security Breach, $400k USDT Frozen by Tether

By: Eliza Bennet

Decentralized exchange, FixedFloat, has reportedly been the target of notable security incursions leading to a loss of $2.8 million. A security firm identified several 'suspicious transactions' that pointed to this sizable withdrawal from FixedFloat's Ethereum-based hot wallet. In the wake of this, stablecoin issuer Tether distinctly blocklisted ten addresses implicated in the transactions, succeeding in freezing approximately $400,000 in USDT tokens.

The funds withdrawn from FixedFloat's hot wallet were noted as being redirected to a dubious address, further receiving assets such as ETH, USDT, WETH, DAI, and USDC. Following this diversion, the assets were swapped into Ethereum on a decentralized exchange and transferred to eXch exchange. Amid these occurrences, the hot wallet ceased operations, instigating the move to maintenance mode for FixedFloat's website.

This breach bears resemblance to a previous incident in February where FixedFloat was prey to an access control issue, leading to a $26 million loss. The exchange did not provide a public comment regarding the most recent security breach, similar to the response during the February incident. Left with their hot wallet defunct, the exchange is now in maintenance mode.

Furthermore, the USDT issuer, Tether, has not made a statement regarding the freezing of addresses involved in these suspicious transactions. Over the preceding year, the company amplified its efforts in freezing addresses associated with illegitimate activities.