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$30 Million USDT Stolen from Tether Treasury Wallet

Many were concerned when a new pull request made earlier today in Tether's GitHub repository showed a new commit with changes made to reject all transactions from a specific address.


Tether has now released a "Critical Announcement" addressing this issue:

$30,950,010 USDT was removed from the Tether Treasury wallet on November 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. The attacker is holding funds in the following address: 16tg2RJuEPtZooy18Wxn2me2RhUdC94N7r. If you receive any USDT tokens from the above address, or from any downstream address that receives these tokens, do not accept them, as they have been flagged and will not be redeemable by Tether for USD.

Interesting that they mention redeeming Tether for USD when their Terms of Service state:

There is no contractual right or other right or legal claim against us to redeem or exchange your Tethers for money. We do not guarantee any right of redemption or exchange of Tethers by us for money. There is no guarantee against losses when you buy, trade, sell, or redeem Tethers.

Their back-end wallet service remains offline as they continue to investigate. No further details were given on how this hack happened or if they were able to implement any fixes yet.

This news quickly caused a slight dip in BTC and most other coins' prices, but it has since partially recovered.