Tether the company that offers dollar-backed digital tokens widely used in the market’s exchange trade claiming its systems have been hacked.
The company that converts fiat currency to token said Monday that a hacker snatched $30 million worth of its tokens.
The company announced that on Nov. 19 hacker stole the amount and sent it to an unauthorized bitcoin address. It also added that the stolen tokens will not be rescued, and it is trying to prevent them from entering the ecosystem.
The start-up said it is releasing a new version of the Omni Core software client that will prevent the stolen coins from recirculating into its ecosystem by locking them into the alleged hacker’s wallet. It will temporarily suspend its back-end wallet service
“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,” Tether wrote.
Bitfinex, a crypto-currency exchange trading and currency-storage platform which uses Tether itself lost 119,756 bitcoin then worth $72 million but valued at over $950 million today.
According to report, the incidents creates more questions about the relationship between Tether and the secretive exchange Bitfinex.
Tether said that its tokens are backed by fiat money which makes legal tenders and is supported by the dollar, euro, and soon Japanese yen.
When the news revealed, bitcoin’s value took an indentation, after that it recovered. At the time of posting the news, bitcoin’s value stood at $8,126.71, down 1.35 percent over 24 hours, according to report.