Over $30M stolen from Tether

According to the official statement of Tether, $30,950,010 USDT was removed from the Tether Treasury wallet on November 19, 2017
21 November 2017   2033

Tether, the company behind dollar-pegged cryptocurrency reported about the hack attack. According to the official announcement, over $30M were stolen.

$30,950,010 USDT was removed from the Tether Treasury wallet on November 19, 2017 and sent to an unauthorized bitcoin 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 attacker is holding funds in the following address: 16tg2RJuEPtZooy18Wxn2me2RhUdC94N7r. 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 USD.  
 

Tether Team

Tether Team performed these steps:

  1. The tether.to back-end wallet service has been temporarily suspended. A thorough investigation on the cause of the attack is being undertaken to prevent similar actions in the future.
  2. New builds of Omni Core were provided to the community. (Omni Core is the software used by Tether integrators to support Omni Layer transactions.) These builds should prevent any movement of the stolen coins from the attacker’s address. Developers strongly urge all Tether integrators to install this software immediately to prevent the coins from entering the ecosystem. Again, any tokens from the attacker’s address will not be redeemed. 
    Note that this software will cause a consensus change to currently running Omni Core clients, meaning that it is effectively a temporary hard fork to the Omni Layer. Integrators running this build will not accept any token sends from the attacker’s address, preventing the coins from moving further from the attacker’s address.
  3. Developers are working with the Omni Foundation to investigate ways that will allow Tether to reclaim stranded tokens and rectify the hard fork created by the above software. Once this protocol enhancement is complete, the Omni Foundation will provide updated binaries for all integrators to install. These builds will supersede the binaries provided above by Tether .to. After the protocol upgrades to the Omni Layer are in place, Tether will reclaim the stolen tokens and return them to treasury.

 It is also worth noting that Huobi Pro

and Okex suspended the USDT trading at the moment.

Tether to Transfer 15M USDT to Liquid Network

It should be noted Liquid allows you to hide values ​​in the public registry using the "confidential transaction" protocol
09 January 2020   187

On January 7, Tether, the stablecoin issuer, transferred 15 million USDT from its reserves on the Ethereum blockchain to Blockstream's Liquid network, which is a federated bitcoin sidechain. The technical feasibility of such a swap was first announced in July 2019.

An important difference between Liquid and other blockchains is the support of assets that allow you to hide values ​​in the public registry using the "confidential transaction" protocol. By transferring Tether between exchange accounts through Liquid, traders will be able to avoid disclosing information about their intentions to other market participants.

Movements of tether can be tracked in general but also particularly to and from exchanges, which is valuable information. People absolutely trade based on this information. Moving from a blockchain that has transparent transactions and onto Liquid is somewhat of a no-brainer in the context of trading.

 

Grubles

Pseudonymous Blockstream community manager

 Blockstream CSO Samson Mow noted that Liquid-based Tether could be the first example of a semi-private stablecoin.

Services like Whale Alert, that track movements of assets, would not work for confidential assets in Liquid. With Confidential Transactions you can’t see the amounts being sent from one party to another. That means that USDT issued in the Liquid Network provides better privacy than USDT on other chains.

 

Samson Mow

Blockstream CSO

At the same time, the Tether emission in the Blockstream system remains public, which can help dispel skeptics' doubts.

According to Tether Technical Director Paolo Ardoino, customer interest in confidential transactions led the company to decide to transfer $ 15 million from the Ethereum network to Liquid.