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   1147

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 Have Account at Bahamas

Tether reported on cooperation with Deltec Bank at Bahamas
02 November 2018   223

The issuer of the USDT, Tether Limited officially confirmed its cooperation with Deltec Bank, a small financial institution from the Bahamas. The company also submitted a letter, on the basis of which it has sufficient funds to ensure the total volume of issued USDT tokens.

Tether Limited is pleased to confirm that it has established a banking relationship with Deltec Bank & Trust Limited (“Deltec”), a 72-year-old financial institution with headquarters in the Commonwealth of The Bahamas.
 

Tether Team

It is also noted that Tether Limited was accepted as a Deltec client after full company check. Allegedly, it includes an analysis of processes, policies and legal compliance, a complete check of information about shareholders, final beneficiaries and managers of Tether Limited, as well as an assessment of the company's ability to maintain a binding to the US dollar at any time and its reserve management.

This process of due diligence, was conducted over a period of several months and garnered positive results, which led to the opening of our bank account with this institution. Deltec reviews our company on an ongoing basis.
 

Tether Team

Tether also states that the company is registered with the Financial Crimes Enforcement Network (FinCEN) and the US Department of the Treasury and adheres to the highest standards in anti-money laundering and terrorist financing procedures.

The message is accompanied by a reference to a letter from Deltec Bank, which states that at the end of the business day on October 31, 2018, the Tether account had a cash value of $ 1,831,322,828.

Thus, based on this letter and taking into account the current capitalization of USDT ($ 1.772 billion), Tether really has sufficient funds to ensure the total volume of issued tokens. The question of whether they were provided at all stages of the company, remains, however, open.

It also draws attention to the fact that in the letter, contrary to the accepted practice, there is no signature of any official of the bank.