Newsflash: Bitcoin Price Loses $500 after Tether Hack, Recovers Above $8200

Newsflash: Bitcoin Price Loses $500 after Tether Hack, Recovers Above $8200

The company is now scrambling to prevent the stolen tokens from entering the wider trading economy, confirming that they will not be redeemed in its own platform.

Tether also temporarily suspended its back-end wallet service to assist in its investigation.

On November 21, 2017, an announcement was released by the Tether team declaring that an unknown hacker managed to usurp $30,950,010 worth of Tether tokens (USDT). Accordingly, any and all exchanges, wallets, and other Tether integrators should install this software immediately in order to prevent loss: that this software will cause a consensus change to now running Omni Core clients, meaning that it is effectively a temporary hard fork to the Omni Layer.

Tether is not exactly a big player in the cryptocurrency scene, like bitcoin or Ethereum are. A new build of Omni Core software will be provided to users in a bid to freeze the USDT in the above-referenced address. Again, any tokens from the attacker's address will not be redeemed.

Tether's cryptocurrency, the USDT, is pegged to the USA dollar. The statement reads, "Yesterday, we discovered that funds were improperly removed from the Tether treasury wallet through malicious action by an external attacker".

SpeedflyChris updated his post to link both Tether and Bitstamp hacks with the stolen 12000BTC from Huobi in late 2015. "We appreciate the community's patience, understanding, and support while we work to rectify the situation". Coindesk reports that the relationship between Tether and the British Virgin Islands-based bitcoin exchange Bitfinex is under scrutiny for "long-standing allegations the exchange has been using the asset to engage in fraud and market manipulation".

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