Tether to Launch New Platform Following Hack

Tether, a startup that provides a dollar-pegged token, has said it plans to launch a new platform following a claimed security breach in November.

AccessTimeIconDec 21, 2017 at 11:00 a.m. UTC
Updated Sep 13, 2021 at 7:18 a.m. UTC

Tether, a Santa Monica-based startup that provides a dollar-pegged token, has said it plans to launch a new platform following a claimed security breach in November.

In a notice on its website, Tether lists some of the steps taken to recover from the hack that is claimed to have stolen $30 million-worth of its tokens, as well as updating users on how they can redeem funds that are still held on the platform.

As previously reported, following the breach, the Omni Foundation platform, which developed the bitcoin-based software protocol upon which Tether tokens are built, released a new version of the Omni Core software client that froze and "blacklisted" the stolen tokens.

Tether states:

"In this way, Omni could prevent them from being used at a protocol level. This action was not taken lightly and has allowed Tether to safeguard against any further potential disruptions to the ecosystem in an effort to protect the entire community."

According to the update, Tether has reopened "limited" wallet services to users since Tuesday, allowing them to start withdrawing funds held in their wallet, if so desired.

While few details were provided, Tether also announced it is developing a new platform and will be discontinuing its current wallet services and old addresses. New registrations to its platform are currently not being accepted.

The startup advises users to exchange their tether tokens on third-party exchanges, adding:

"To prevent against possible loss of funds, users should not attempt to deposit any funds to their old wallet or deposit addresses."

Tether is also working to update its terms and service based on community feedback, and that auditing firm Friedman LLP is still working on a full balance sheet audit, as of Sept. 30, 2017.

Concluding, the firm restated that its assets balances as listed on its website are accurate, declaring, "Any suggestion to the contrary is uninformed and baseless."

Hacked computer data image via Shutterstock


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