About $2 million in BNB tokens were sent to a Tether (USDT) wallet yesterday. The wallet had just been created, which raised red flags on Tether’s end, so the Tether owners blacklisted the wallet as a safety measure.
The Hack Revealed
A Tether bot listed the blacklisting on twitter, bringing the hack to the mainstream media’s attention and creating one of the biggest crypto news stories this week. It was later disclosed that this blacklisting denoted a major hack on the Tether network, as the funds transferred added up to about $590 million in US dollars.
The blacklisting was confirmed later on in the day in a tweet from MevRefund. There has been speculation from several fronts as to how the malicious activity might have happened and where it originated from. There has not been any official confirmation from Tether that a hack actually took place.
It makes sense that the company might want to stay quiet on the hack since Tether is still attempting to recover its image after a series of scandals and inquiries involving its backing for Tether’s market cap.
Where Does This Leave Tether?
The kind of effect that this hack is having on Tether right now is minimal. Trade volume is down 11.55%, but there was still more than $40 billion in USDT funds traded over the last 24 hours.
The Tether rate is holding at $1.00 (USDT/USD), keeping pace with the US dollar that it is tied to. There may be some knockdown effect on the token once more facts come out and the story receives more media attention, but we do not expect a major impact. Tether has proven to be incredibly resilient over the last couple years through multiple legal attacks and attempted illegal incursions into the Tether network.
The crypto market is staying steady today with a minimal loss of 0.91% compared to yesterday. We may see some change over the weekend, but Tether is likely to be mostly unaffected.