$30 million worth of Token Stolen By Attacker from Tether

Hackers stole $30 Million worth of Token from our systems – Tether

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Tether, the business outfit responsible for the dollar-pegged cryptocurrency commonly used in the market’s exchange trade, has claimed that its systems have been infiltrated by hackers with nothing less than $30 million worth of token stolen from its system.

Tether made a post on its official website (though it has since been removed), blaming the “malicious action by an external attacker” for stealing $30 million worth of its tokens – $30,950,010 USDT to be precise yesterday. Initially introduced as Realcoin but later rebranded with the aim of serving as a proxy for the USD that can be sent between exchanges like Poloniex, Bitfinex, and other exchange markets.

In reply to this attack, Tether said it would make a quick move to ensure that these exchanges do not trade, if not, there will be re-introduction of the stolen funds back into the cryptocurrency economy.

Tether stated:

$30,950,010 USDT was removed from the Tether Treasury wallet on Nov. 19, 2017 and sent to an unauthorized bitcoin address. As Tether is the issuer of the USDT managed asset, we will not redeem any of the stolen tokens, and we are in the process of attempting token recovery to prevent them from entering the broader ecosystem.

Tether runs on Omni Core software client and has declared that it will soon be releasing a new version of this software client so as to successfully lock up the allegedly token stolen. If nodes within the network should adopt this software, it will effectively blacklist the token stolen, presenting an emergency fork which will curtail the funds.

Representatives from the Omni Core software client have said that they would seek to release new software in the near future that will enable Tether to recover any token stolen further from the system.

Tether wrote “The tether.to back-end wallet service has been temporarily suspended. A thorough investigation on the cause of the attack is being undertaken to prevent similar actions in the future“.

This announcement comes amidst a period of growing discussion – and controversy – around Tether.

Though unclear, the relationship between Tether and the troubled British Virgin Islands-based bitcoin exchange Bitfinex has been under scrutiny, with a long-lasting allegation that British Virgin Islands-based bitcoin exchange has been using the asset to engage in fraud and market manipulation. Further complicating the matters, the two companies are said to share a common ownership, though there has not been a clear detail as to the exact nature of the relationship between both companies.

As a result, yesterday’s hack on Tether presents claims that are likely to further drive the controversy, which began following Bifinex’s hack last August, where over $70 million was lost in customer funds.

This theft action on Tether has caused other exchanges, such as OKCoin and China-based Huobi, that offer order-book trading on Tether to take steps towards freezing trading, an a few had already announced this move shortly after the incident.

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