Tether, a startup that offers dollar-backed cryptocurrency, announced on Monday that its system was hacked, with more than $30 million US dollars worth of Bitcoin stolen.
In the removed post from the company’s website, Tether blamed a “malicious action by an external attacker” for the heist. Tether, which was originally called Realcoin, is a platform that serves as a proxy for USD that can be sent between various exchanges.
The company said it is moving quickly to make sure the exchanged money does not trade and reintroduced into the digital currency economy.
Tether wrote a statement saying:
“$30,950,010 USDT was removed from the Tether Treasury wallet on Nov. 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.”
They are planning on releasing a new version of the software client Omni Core, which Tether runs on top of, to tie up the stolen currency. If all the nodes in the bitcoin network accept the new software, it would completely blacklist the stolen address and would trigger an emergency hard fork to hold the funds.
Employees at Omni Core are hoping to release their new software in the days ahead, in hopes of retrieving the stolen Bitcoin.
Cryptocurrency investors took to twitter to voice their speculations on the entire situation, as it related to Tether and their level of control over their own software and the blockchain. In one particular thread, an investor said, “The level of control they exert over this blockchain is unusual, to the point where it could trigger regulation.”
Following the announcement of the hack, other exchanges that grant order-book trading on Tether, like Huobi and OKCoin, immediately took steps and froze their trading.
Featured Image: twitter