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Cryptocurrency Startup Claims Hackers Stole $31 Million in US Dollar Token (USDT)

Cryptocurrency Startup Claims Hackers Stole $31 Million in US Dollar Token (USDT)

But the widely followed cryptocurrency fell more than 5 percent overnight, briefly breaking below $8,000, after CoinDesk reported that Tether, a start-up that offers dollar-backed digital tokens, said hackers stole more than $30 million from its investors. "Tether integrators must take immediate action ... to prevent further ecosystem disruption". A new build of Omni Core software will be provided to users in a bid to freeze the USDT in the above-referenced address.

While many cryptocoins seek to transcend conventional currency, the cryptocurrency Tether claims to back each of its issued tokens with an equal amount of redeemable cash held in a private reserve. The statement reads, "Yesterday, we discovered that funds were improperly removed from the Tether treasury wallet through malicious action by an external attacker". "Accordingly, any and all exchanges, wallets, and other Tether integrators should install this software immediately in order to prevent loss", the company wrote. Until then, the company has requested not to receive any USDT tokens from the tainted address or from any downstream address that receives the tokens. Again, any tokens from the attacker's address will not be redeemed. Tether said that the software will issue a change to the consensus protocols that Omni Core clients now utilize; indicating that the fix "is effectively a temporary hard fork".




According to SpeedflyChris, the source of the vulnerability appears to be connected with the wallet used to steal 19000BTC from Bitstamp three years ago. The operators of the Tether network announced in a since-removed notice that $30,950,010 of the tokens were "removed from the Tether Treasury wallet" on Sunday and "sent to an unauthorized bitcoin address".