Reddit user found vulnerability in Tether

The connection between Tether breaking and earlier hacking is foun
22 November 2017   235

Reddit user SpeedflyChris published the results of his cryptoramination from the blockchain. He has found that the Tether’s hack is very similar to Bitstamp’s hack in 2015 year. Then was lost 19000 BT.

The user considers that the Tether vulnerability appears’ source is connected with the wallet used to steal from Bitstamp. This wallet was used to make 2 transactions with 0.01 BTC for each to the address.

SpeedflyChris wrote that this wallet made two transactions, the first is fairly innocuous and illustrated it by link.

Then it removed $30,950,010 USDT from the Tether and sent it to final bitcoin address. This transactions was structured like an additional security layer and this allowed hackers to get tokens without any problem.

Also SpeedflyChris thinks that with this wallet was stolen 12000 BTC from Huobi in 2015 year. Then was used exactly the same scheme with microtransactions which was used with Bitstamp and Tether.


Bitfinex Shareholder Claims Tether Backed with $3B

According to investor and shareholder Zhao Dong, he saw the balance of the Tether and Bitfinex bank account
06 February 2018   125

Zhao Dong, a well-known Chinese investor and shareholder of Bitfinex, claims to have seen with his own eyes the balance of the Tether and Bitfinex bank account during a recent meeting with Bitfinex Financial Director Giancarlo Devasini. This is reported by

Lao Mao (CEO, Big One) (and I) just had a look at the USD account of Tether and Bitfinex in Giancarlo’s (Boss of BFX, CFO) room, in which Tether’s account holds 1.8x billion USD and Bitfinex holds 1.1x billion USD. The total number of the two accounts is around 3 billion USD, which is beyond the current circulated supply of USDT. This debunks all rumors around USDT.

Zhao Dong

Shareholder, Bitfinex

The chief executive officer of published a blog post following the trip, in which an interview between Mr. Devasini and one of Lao Mao’s associates is made public. 

The Bitfinex team has aroud 50 people. The Tether team does not work for money. As early as bitcoin investors, the team has a sense of responsibility and mission. Tether can no longer be limited to the US dollar. Company can use the euro, the Japanese yen and other fiat currencies.

Giancarlo Devasini
CFO, Bitfinex

He also noted that the company does not intend to disclose all the details of its relations with banks, which is supposedly a reciprocal measure of pressure from the US banking industry, which in every possible way interferes with Tether's activities.

From the interview, Mao concluded that "we can trust Tether and USDT."

The mood of Mao relative to the Tether tokens has recently changed markedly. In November of last year, he urged the exchange to not integrate couples with USDT.

In addition, the authors of the report criticized Tether and Birfinex for lack of transparency in their relations with banks, and specifically Tether - for the fact that the issuer presented audits of the auditor Friedman LLP as full-fledged audits, although they were not.