Bitcoin Falls After $31 Million Theft of Cryptocurrency Tether

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Bitcoin Falls After $31 Million Theft of Cryptocurrency Tether

Tether integrators must take immediate action, as discussed below, to prevent further ecosystem disruption.

Notably, the company said that it is releasing a new version of its Omni Core software (which Tether runs on top of) in a bid to effectively lock up the tokens it alleges were stolen, effectively performing an emergency fork in order to contain the issue.

Unlike many digital currencies, which tend to fluctuate wildly against the dollar, Tether is pegged to the United States currency. 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 United States dollars. A new build of Omni Core software will be provided to users in a bid to freeze the USDT in the above-referenced address. The attacker is holding funds in the following address: 16tg2RJuEPtZooy18Wxn2me2RhUdC94N7r. We strongly urge all Tether integrators to install this software immediately to prevent the coins from entering the ecosystem. After the protocol upgrades to the Omni Layer are in place, Tether will reclaim the stolen tokens and return them to treasury. Again, any tokens from the attacker's address will not be redeemed.

Tether issuances have not been affected by this attack, and all Tether tokens remain fully backed by assets in the Tether reserve.

In response, Tether said it would move swiftly to ensure these exchanges do not trade or otherwise introduce the stolen funds back into the cryptocurrency economy. In a post on its website, Tether says $30,950,000 USDT was taken from its treasury wallet on November 19th and sent to a unauthorized digital wallet.

The announcement comes amid a period of growing discussion - and controversy - around Tether. So, it may be possible for Localbitcoins to access logs from 2015 that are related to the wallet addresses and thus identify the hacker.

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