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Tether Hack: Cryptocurrency Worth $31 Million Stolen

21 November 2017

According to Tether, a company that's behind the cryptocurrency of the same name (known by the symbol USDT), someone recently stole almost $31 million from its digital vault.

Tether offers the chance to "to store, send and receive digital tokens pegged to dollars, euros, and yen person-to-person, globally, instantly, and securely for a fraction of the cost of any alternative".

Tether says it will not redeem any of the stolen tokens and that it is in the process of attempting to recover the tokens to prevent them from entering the broader ecosystem.

"... We discovered that funds were improperly removed from the Tether treasury wallet through malicious action by an external attacker", an announcement read Monday after the attack became apparent November 19.

Tether said that following the attack, it has suspended the backend wallet service.

The stolen funds have been moved it to 16tg2RJuEPtZooy18Wxn2me2RhUdC94N7r address.

While Tether has been able to identify the address in which the hacker is holding those stolen funds, it hasn't yet understood how the attack took place.

Tether has improved its Omni Core builds that will help to strengthen its software and it is providing it to its community members. Tether is said to be related - owned, even - by one of the largest crypto exchanges out there, Bitfinex, and there's talk of the two companies engaging in dishonest activities.

Almost $31 million worth of bitcoin currency was wiped off from cryptocurrency startup Tethers' Treasury account. To do so, it is temporarily suspending its back-end wallet service as well as rolling out an update to its partner software, Omni Core, which will essentially lock the tokens inside the alleged hacker's wallet.

The company added that it is "working with the Omni Foundation to investigate ways that will allow Tether to reclaim stranded tokens and rectify the hard fork created by the above software".

Tether Hack: Cryptocurrency Worth $31 Million Stolen