Exchanges Interrupt USDT Transactions Following $30M Tether Hack

Controversial Tether altcoin company a few hours ago divulged cyber attack which cost them more than $30 million USDT. The company vouchsafed that they are working on a temporary hard fork that would suspend USDT transactions on leading exchanges to rectify the situation.

The Tether team released a statement explaining the discovery of funds that were illegally pulled out from the Tether treasury wallet yesterday. According to the team, an external attacker allegedly performed the malicious action. A total of $30,950,010 USDT was transferred from the Tether treasury wallet to a bootleg Bitcoin address on November 19, 2017.

Tether cautions the hacker or whoever is responsible for the lost USDT that they will not redeem the stolen tokens, instead they are trying to recover the token and prevent it from entering the broader ecosystem.

The company tapped Tether integrators to support them as they plan to conduct preventive measures to avoid further ecosystem disruption. Part of it is the inclusion of temporary back-end wallet service, an emergency hard fork, and an investigation to determine the root of the attack and prevent to from happening again.

The team elaborated that they are reconstructing its software Omni Core which supports transactions. It will prevent movement of the lost coins from the hacker’s address. The temporary hard fork will cause a consensus change to their active clients.

Tether also reassured the users that they are doing everything to reclaim the stranded tokens and rectify the hard fork. They also guaranteed the users that all the tokens are backed by assets in the Tether reserved, and the attack did not touch the issuances.

As a consequence of these developments, some exchanges such as Huobi.Pro and fellow Asian venue OKEx and are suspending USDT transactions. According to the exchanges, they are doing this to ensure the safety. The suspension includes USDT deposits and withdrawal services.

Tether is vital for platforms because USDT can serve as an alternative to the dollar instead of using crypto or fiat.