Cryptocurrency Stolen Tether Reports

According to the cryptocurrency news site CoinDesk, Tether claimed the hacking of its system on November 20. Tether, a startup that provides dollar-backed digital tokens, reported loss of $30.95 million worth tokens.

In a deleted post on its website, Tether conveyed that a malicious action from an attacker resulted in stealing of tokens, said CoinDesk. The process of recovery is underway to restrict hacker from entering the widespread cryptocurrency market.

Tether had taken a smart step by flagging its tokens. This will help the company to track them. Moreover, it is working toward recovering them as soon as possible.

The startup informed that it has stopped its back-end wallet service, and has updated its software to forbid hackers transferring the stolen coins and to avoid these coins from being recirculated into the ecosystem.

Users can store, send, and receive its tokens across a blockchain. Moreover, they have an option to redeem them for cash, said a company source.

Some of the experts claimed that the incident was related to extreme volatility experienced by Bitcoin on Monday, November 20. In the evening ET, asset took a dive by $430 from $8,250 in about one and half hours.

However, the company claims that fiat money backs its tokens. This backing restricts it from experiencing the volatility, which is usually seen in cryptocurrencies.

The company added that its tokens are supported by the dollar and euro. Moreover, it will soon be supported by Japanese yen.

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