A new start-up that offers dollar-back digital tokens, Tether, stated a few days ago that its systems had been hacked. This is according to cryptocurrency news site, CoinDesk.
The company claims that $30.95 million worth of tokens is gone.
A deleted post on its website, Tether wrote, “malicious actions by an external attacker” resulted in missing tokens.
Tether further claimed it was struggling to recover the stolen tokens to keep them from becoming a part of the cryptocurrency market.
To prevent further injury, Tether said it would temporarily suspend its back-end wallet service and provide updated software to stop the stolen coins from moving from the hacker’s address.
The hacking news might be linked to some acute volatility that bitcoin exhibited on Monday evening. The bitcoin asset fell roughly $430 from $8,250 in about an hour and a half.
Tether reports that its tokens are backed by sanctioned money that prevents volatility. Tether further claimed that its tokens were supported by the dollar, euro, and Japanese yen.
Tether tokens can be stored and used to send and receive funds across a blockchain and redeemed for cash, so it states on their website.