An attacker has reportedly hacked Tether, a dollar-pegged cryptocurrency that is commonly used in the market exchange, and stolen $30 million worth of tokens.
Tether reported this on the website yesterday, claiming that the amount, exactly $30,950,010 USDT, had been stolen on November 19 and terming it as a critical announcement. The attacker stole the money and sent it to an authorized Bitcoin address by the name 16tg2RJuEPtZooy18Wxn2me2RhUdC94N7r
The company has warned that no one should accept to receive the amount. This is because the tokens involved will not be redeemed.
“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,” read the announcement. “If you receive any USDT tokens from the above address, or from any downstream address that receives these tokens, do not accept them. As they have been flagged and will not be redeemable by Tether for USD.”
Tether, which has $673 million in market capitalization, said the attack did not affect their issuance. The company’s tokens still remain fully backed by assets in the Tether reserves.
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To prevent new coins into the ecosystem, Tether is releasing a new version of the Omni Core software client. It will lock out the tokens stolen. The software will create a hardfork to the cryptocurrency’s underlying layer and so block the tokens. Nodes that adopt the software will blacklist the stolen address, enacting an emergency fork to contain the funds.
Hard Fork and Advancement
Other initiatives include working with the Omni Foundation to investigate ways of reclaiming the stranded tokens and rectifying the hard fork created by the Omni Core software. It has also suspended the tether.to back-end wallet service.
“The tether.to back-end wallet service has been temporarily suspended. A thorough investigation on the cause of the attack is being undertaken. It is to prevent similar actions in the future,” Tether wrote.
Tether, which initially launched on Realcoin but rebranded later, offers tokens that are pegged on the U.S. dollar, meaning each token or USDT is always equivalent to 1 USD. This allows people to use the token with lesser or no fears of value depreciation as a result of volatility.
However, Tether mainly serves as a proxy in Bitfinex, Poloniex and other cryptocurrency exchanges and markets.
Meanwhile, Bitcoin price had declined on Tuesday by 5.4 percent to $8,117 in reaction to the hack, reported Bloomberg.