Tether Crypto robbed $30.95 Million by Hackers

[444444]

Seems Bitcoin dropped 5% after this has been announced as Tether is tethered to the USD.
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In an official statement posted on its website yesterday, Tether, a startup that offers 1-to-1 dollar-backed digital tokens [USDT], said a hacker stole funds worth $30,950,010.

Tether claims the hack took place on Sunday, November 19, and the hacker removed funds from the main Tether Treasury wallet and moved it to the 16tg2RJuEPtZooy18Wxn2me2RhUdC94N7r address.

"As Tether is the issuer of the USDT managed asset, 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," the company said.

Tether preparing hard fork
This "process of attempting token recovery" is a hard fork of the underlying Omni Layer protocol that powers the USDT tokens.

If successful, the hard fork will return the stolen funds into the Tether Treasury wallet. The hard fork will work similarly to a time machine, reversing the hack.

This method of dealing with the Tether hack is similar to the solution used by the Ether team to recoup after the infamous DAO hack in the summer of 2016 when an attacker stole $150 million from almost 11,000 investors.

The Tether team said it is still investigating the source of the hack and has nothing to add at this moment. "The Tether Reserve remains in surplus of the 1:1 backing of USDT and has more than the necessary currency on deposit to redeem all existing tethers," the team added.

Tether is world's 19th most popular cryptocurrency
According to Coinmarketcap.com, Tether is ranked as the 19th most valuable cryptocurrency, with a market capitalization of $674 million.

The company said it issued over $300 million worth of USDT (1-to-1 dollar-backed tokens) in the last week alone.

USDT is accepted on a large number of cryptocurrency exchanges —16 at the time of writing— and is used to trade against Bitcoin, Bitcoin Cash, NEO, Ethereum, Litecoin, Dash, and OMG.

Bitcoin price dropped 5.5% after the Tether announcement. Bitcoin had reached a new all-time high yesterday, being traded at roughly $8,120 before the Tether hack announcement.


https://www.bleepingcomputer.com/ne...y-startup-claims-hackers-stole-30-95-million/


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[Unreliable Witness]

So not only is Tether not secure from outside hackers, but also the guys managing it can reverse engineer transactions, taking currency out of other people's wallets.

Sounds like a place to keep my money. How do I buy in?

 

[bartosimpsonio]

Less than 24 hours after Confido scam. Not good.

 

[Chiefjop]

MtGox 2.0?

 

[Webbers UX]

MtGox 2.0?

Not even close. MtGox was 850,000 Bitcoins (in today's value, worth almost $7 Billion).

 

[bartosimpsonio]

MtGox 2.0?

That spot is reserved for BitConnect.

 

[itz_styx]

So not only is Tether not secure from outside hackers, but also the guys managing it can reverse engineer transactions, taking currency out of other people's wallets.

Sounds like a place to keep my money. How do I buy in?

nothing is 100% secure, but yes better keep your money in a bank they never get robbed and bankers are the most trustworthy people on the planet.. derp.

 

[Unreliable Witness]

nothing is 100% secure, but yes better keep your money in a bank they never get robbed and bankers are the most trustworthy people on the planet.. derp.

In Europe banks generally are secure. Most European governments now guarantee deposits up to a certain amount held with any one bank.

I wouldn't say that there are more untrustworthy people who work for banks than for any other type of organisation either.

 

[itz_styx]

In Europe banks generally are secure. Most European governments now guarantee deposits up to a certain amount held with any one bank.

I wouldn't say that there are more untrustworthy people who work for banks than for any other type of organisation either.

i'm from europe, so if we speak about EU banks - tell that to the greek people how secure banks are there remember when all of them suddenly couldn't get their money via ATMs as the banks blocked withdrawls for weeks? also guess you forgot about the general banking crisis some years ago where the bankers scammed us all out of money and laughed about how stupid governments are to pay them millions (there was even a recorded phone call of some UK bankers saying how fucking stupid the german's are for sending them millions a day). the banks gambled with our money, lost it and we had to bail them out by paying their debts. in the end they even got their bonuses as cherry on top.

 

[PinguSpy]

Sure they got hack? Just like rumors said, mt.gox hack their own web. So they can steal the coin.

 

[Unreliable Witness]

i'm from europe, so if we speak about EU banks - tell that to the greek people how secure banks are here remember when all of them suddenly couldnt get their money via ATMs as the banks blocked withdrawls for weeks? also guess you forgot about the general banking crisis some years ago where the bankers scammed us all out of money and laughed about how stupid governments are to pay them millions (there was even a recorded phone call of some UK bankers saying how fucking stupid the germans are for sending them millions a day). the banks gambled with our money, lost it and we had to bail them out by paying their depts. in the end they even got their bonuses as cherry on top.

Its pretty hard to explain the two separate issues of the 2008 crisis and the faults of the Euro in a short forum post.

While banks were involved in the 2008 crisis, the majority of people who worked for them weren't. And it was a government decision to prop them up.

Restricting cash withdrawals at ATMs in Greece was something that the government insisted on, not the banks.

But the 2008 crisis was a giant cock-up by many governments (who haven't really been held to account), there was an enormous amount of greed by certain bankers (who haven't been held to account), it has wrecked the lives of many, some people working in the banking industry are rewarded far more than they deserve, and the Euro is structurally screwed.

 

[Kn9Isler]

i'm from europe, so if we speak about EU banks - tell that to the greek people how secure banks are there remember when all of them suddenly couldn't get their money via ATMs as the banks blocked withdrawls for weeks? also guess you forgot about the general banking crisis some years ago where the bankers scammed us all out of money and laughed about how stupid governments are to pay them millions (there was even a recorded phone call of some UK bankers saying how fucking stupid the german's are for sending them millions a day). the banks gambled with our money, lost it and we had to bail them out by paying their debts. in the end they even got their bonuses as cherry on top.

Yeah...In my country (EU) two banks were almost bankrupt because they gambled (aka stolen) with money. Who do you think paid the debts? The tax payers, me included.
Meanwhile, the high-level bank managers could not sleep because they didn't know what to do with offshore accounts with Millions of EUR/USD on it.
What a fucked up system we have. I mean it is much better than in other countries, but still, there is a lot room for improvement.

I see crypto not as a revolution, it is more a wake-up-call for the elites with the message "It is enough". I hope we will move a couple steps forward.

 

[Redaline]

Peeps...when there is a large scale collapse, not a single government guarantee will help you get your money back.
Cyprus' banks collapse limited everybodies' ATM withdrawals to 300 EUR or something like that.
The only "sure" way to protect your assets is to make them mobile and convertible: either by using another currency,
precious metals or nowadays cryptos.

Each and every protection mechanism has its flaws, another currency will probably collapse together with yours
(unless you are using something not correlated like NZD vs. Turkish Lira), precious metals can be robbed, counterfeited
or simply lost, and cryptos can be manipulated or broken on algo level . That being said, the only value transfer vehicle I currently
trust are cryptos.

 

[bartosimpsonio]

Sure they got hack? Just like rumors said, mt.gox hack their own web. So they can steal the coin.

99.9% of crypto "hacks" have been scams perpetrated by the person claiming to be the victim. Worst part is it works.

 

[444444]

99.9% of crypto "hacks" have been scams perpetrated by the person claiming to be the victim. Worst part is it works.

Yeah but in this case Tether is doing a core update that will lock the funds out so im sure they're not the ones to blame?