Reddit user found vulnerability in Tether

The connection between Tether breaking and earlier hacking is foun
22 November 2017   929

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.


Bloomberg to Gain Access Tether Fin. Reports

Company’s accounts in the Puerto Rican Noble Bank kept $ 2.2 billion
18 December 2018   170

The Bloomberg has gained access to the financial statements of Tether Limited, the issuer of stablecoin USDT. To give an unequivocal answer, whether all USDT tokens are provided with US dollars at the moment, the publication did not work, but on January 31 this statement was true.

So, on this day, the company’s accounts in the Puerto Rican Noble Bank kept $ 2.2 billion. According to the CoinMarketCap analytical resource, at the same time, there was 2.195 billion USDT in turnover. The data also coincided in September and October 2017, according to representatives of the publication.

Note that Tether Limited managed to open an account with Noble Bank in September 2017, and the company increased its assets from zero to $ 392 million in just one month. about $ 60.9 million user funds. At least this was mentioned in the report of the auditing firm Friedman LLP, with which Tether subsequently broke off relations.

The Bloomberg report states that cash began to flow into another bank in July 2018. If at the beginning of the month, the account with Noble Bank was $ 1.9 billion, at the end - $ 210 million. Probably, the money was transferred to Deltec Bank in the Bahamas, which confirmed that Tether had $ 1.831 billion in balance on October 31, 2018 .

It is worth adding that the publication managed to match a number of transactions between the Bitfinex and Tether accounts at Noble Bank, which completely coincided with the USDT transfers.

Recall that in January, the US Commodity Futures Trading Commission (CTFC) began to study the activities of Bitfinex and Tether, sending summons to the representatives of both organizations to the court. After that, Tether suspended the issue of USDT tokens for two months.

In November, the US Department of Justice launched its own investigation to check whether bitcoin price manipulation took place at the expense of the USDT issue.