According to the Web3 security firm Cyvers, FixedFloat's hot wallet on the Ethereum network was hit with questionable transactions resulting in the disappearance of $2.8 million within the day.

In response to this incident, stablecoin issuer Tether blocked ten addresses connected to these transactions, effectively freezing around $400,000 worth of USDT tokens, as reported by blockchain security firm Peckshield.

Cyvers reported that a significant amount of money was withdrawn from FixedFloat's hot wallet and sent to a suspicious address, which later received various digital assets like ETH, USDT, WETH, DAI, and USDC. Subsequently, the assets were converted to Ethereum through a decentralized exchange (DEX) before being transferred to eXch exchange, causing the hot wallet to stop functioning.

Although no official statement has been released by FixedFloat regarding these transactions, the exchange's website going into maintenance mode suggests a similar response to a security breach in February when $26 million was lost due to an access control issue, leading to a domain transition from fixedfloat.com to ff.io.

Tether took swift action by freezing the addresses involved in the suspicious transactions on FixedFloat, but has not responded to inquiries at the moment.

The stablecoin company has been cracking down on addresses associated with illegal activities over the past year, freezing addresses related to the hacking of Ledger's Connect Kit library and collaborating with regulatory agencies globally to retrieve stolen funds from criminals.

Despite Tether's efforts, there are concerns that these malicious individuals are increasingly using USDT for their activities.