Exchanges Suspend USDT Transactions After $30 Million Tether Treasury Wallet Hack

The company behind the controversial Tether altcoin has revealed a few hours ago that it suffered a cyber attack in which the alleged hacker made off with over $30 million worth of USDT. The company also announced some steps to rectify the situation, including one that is effectively a temporary hard fork, leading exchanges to suspend USDT transactions.

The critical announcement issued by the Tether team explains that: “Yesterday, we discovered that funds were improperly removed from the Tether treasury wallet through malicious action by an external attacker. $30,950,010 USDT was removed from the Tether Treasury wallet on November 19, 2017 and sent to an unauthorized bitcoin address.”

As the issuer of the USDT, Thether warns the hacker or anyone that might be working with him that: “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.”

Emergency Fork

The team explains that they are providing new builds of Omni Core, the software used by Tether integrators to support transactions, that should prevent any movement of the stolen coins from the attacker's address. This will cause a consensus change to currently running clients, “meaning that it is effectively a temporary hard fork.”

Nothing to worry about'

In response to these developments some exchanges have notified their traders that they are suspending USDT transactions. Huobi.Pro and fellow Asian venue OKEx for example have both announced that: “In order to ensure safety, with immediate effect, we would suspend the USDT deposit as well as the withdrawal services.” Tether trading is particularity important for platforms that don’t want to seem as if they are offering crypto/fiat pairs (in places where this can be a sensitive matter, like China), using USDT as as proxy for the dollar instead.

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The post Exchanges Suspend USDT Transactions After $30 Million Tether Treasury Wallet Hack appeared first on Bitcoin News.


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