Tether Says $30 Million in Token Stolen by Hacker

Tether, the business behind a cryptocurrency pegged to the U.S. dollar that is used widely in the market’s exchange trade, has claimed that it was hacked and over $30 million in tokens were stolen.

In a post that appeared on its website, which since has been taken down, Tether places the blame on a malicious action taken by an external attacker that resulted in the theft of USDT valued at $30,950,000 on Monday.

Originally known as Realcoin, then later receiving a re-brand, Tether looks to serve as the proxy for the dollar that can be sent between different exchanges such as Poloniex, Bitfinex as well as other markets.

Tether in response said it was moving quickly to ensure the exchanges do not trade or introduce the funds that were stolen back into the growing cryptocurrency economy.

The company in its post said it was releasing another new version of Omni Core software client that Tether currently runs on top of, as an attempt to lock up in an effective manner the tokens that it alleges had been stolen.

Should nodes within the network adopt that software, it would in effect blacklist the address that was stolen, enacting a way to contain those same funds from being used or disbursed.

Omni core software project representatives said they would seek out the release of new software over the upcoming days allowing Tether to retrieve its stolen tokens.

Online observers spotted this move early Tuesday, adding to speculations about the nature of such a freeze.

Tether wrote that the tether.to wallet service was suspended temporarily and a complete investigation on how the attack took place has been started to prevent any similar actions from happening in the future.

This announcement comes amidst a time of increased discussion as well as controversy focused on Tether.

What has come under much scrutiny is the relationship, which remains unclear, between Tether and Bitfinex the troubled bitcoin exchange based in the British Virgin Islands, and the allegations made some time ago that the exchange has used the asset to engage in market manipulation and fraud.

Complicating things is the two companies are believed to share common ownership, although details continue to be murky as to what the nature is exactly of that connection.

Because of that, the hack claims will further drive such controversy, which started following the hack of Bitfinex last August when it lost over $70 million in funds of its customers.

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