Tether, Bitstamp and Huobi Most Likely Hacked by the Same Person

Nichole Vega
November 24, 2017

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, as discussed below, to prevent further ecosystem disruption.

"We appreciate the community's patience, understanding, and support while we work to rectify the situation", it added.

Tether's cryptocurrency, the USDT, is pegged to the US dollar.

"A thorough investigation on the cause of the attack is being undertaken to prevent similar actions in the future", the company said in a statement. "Accordingly, any and all exchanges, wallets, and other Tether integrators should install this software immediately in order to prevent loss", the company wrote. That keeps its value predictable, but presents a problem if a token is stolen from one of the company's "treasury" wallets. As mentioned above, the company has also rolled out an update to Omni Core, its software for partners.

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.

The announcement comes amid a period of growing discussion - and controversy - around Tether.

In an interesting twist, according to a user who posted these findings, the culprit implicated in both the Tether hack and Bitstamp incident of 2015 appears to be the owner of another wallet that was used to steal 8500 BTC from Huobi in 2015, although this detail remains unsubstantiated. So, it may be possible for Localbitcoins to access logs from 2015 that are related to the wallet addresses and thus identify the hacker.

Other reports by AllAboutTopnews

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