Tether Tokens Were Stolen From Treasury Wallet

On Sunday, November 19th, $30,950,010.00 in Tether tokens were stolen from our treasury wallet through malicious action by an external attacker. While we are in the process of co-ordinating and co-operating with law enforcement on this matter, we are satisfied that we have found the cause of the breach of Tether’s systems. We are taking measures to recover the Tethers and are migrating the platform to a new infrastructure. More information about our initial response to this breach is here.

No customer funds were stolen as a part of this security breach; only Tether tokens were taken, and only from the Tether hot wallet. We have told Tether integrators that those Tethers will not be redeemed by Tether. This breach was planned and premeditated as a market disruption event and an attack on our customers, our business, and our community.

Those of us who care about our community must fight against hackers as well as those enemies using misinformation to create chaos and sow distrust.

We are a privately held corporation with significant assets. Our books are currently under audit by Friedman LLP, one of the fifty largest accounting firms in the United States. While the audit is taking longer than we would have liked, the reality is that the interim consulting memorandum they produced shows clearly that Tether has the resources to back Tethers that have been issued. Friedman looked at our bank statements and other documents underpinning these issuances.

We have strong customer and shareholder relations and tens of thousands of you know the importance of our community and this journey we are on together. We work closely with financial regulators, law enforcement agencies, compliance personnel, bank officials, and tech academics, among others, to ensure that we are protecting our customers and meeting our obligations.

As with other financial institutions worldwide, and in order to safeguard your assets, we do not redeem Tethers from terrorists or other criminal elements. In order to protect our customers and the community, we must keep language in our terms of service preventing bad elements from sullying our systems. In any event, our terms of service inform our customers of what the law already provides: that we cannot and will not issue Tethers to or redeem Tethers from criminal elements. Nevertheless, we believe in being as straightforward and honest as possible about what you are dealing in. We are willing to review our terms of service to see if we can make this point more clearly.

Similarly, we will not endanger our customers by revealing our banks. As those of you who are active in cryptocurrency know, there is pressure from large correspondent banks in the U.S. to bully other institutions not to accept the community’s business. We do, however, bank at major financial institutions and will continue to do so.

Further Issuances

Tethers are being ‘printed’ or issued because there is demand for them. This process is explained in the Tether whitepaper. When Tethers are issued, assets are debited (added) to the assets on Tether’s balance sheet, and Tethers are credited (added) to the business’s liabilities. The consulting memorandum demonstrates that these mechanisms are in balance. Every Tether is fully backed by the fiat underpinning it upon issuance.

We are proud to have been one of the first to market with a product. Some of the main actors in the digital token space have adopted it. We believe it works well.

Conclusion

We are proud of the business that we have built, and of its resilience in the face of threats from those trying to attack our community. We always have room for improvement, and we will continue to work hard to continue to earn your trust and confidence. We understand trust must always be earned and we will continue to work hard as a business to improve our communications.51877416-cartoon-thief-safecracker-breaks-into-a-safe-vector-illustration

Bittrex /Poloniex Customers Locked Out: Are Crypto Exchanges Ready for Bitcoin?

Bittrex and Poloniex users took to social media to voice their concerns: something is wrong at the third largest cryptocurrency exchange in the world. Customers openly complain they’re having issues with withdrawals, and this has been going on for weeks. Certainly every popular platform has had its share of problems with runs in the wake of price spikes, but until yesterday the exchange offered no formal, public explanation.  

Also read: bitcoin-price-reaches-another-peak-crossing-15000/

Bittrex Has a Public Relations Problem

BittrexPoloniexIMG_2151-1-1068x1068 hasn’t Tweeted since 30 November. Its Facebook page hasn’t been updated since Summer. Customers are starting to worry, loudly.

Important Information About Identity Verification, published the evening of 5 December, the exchange explained, “We are committed to making sure our services are not used to launder money, support terrorism, commit fraud or other illegal activities,” citing the Bank Secrecy Act and other regulations as catalyst.

Describing their services as “frustrating or a hassle,” the exchange blamed, essentially, lack of customer literacy in the identity verification process. Stressing they “cannot do this without the help of our customers,” the post then lists “common mistakes or issues that arise.”

Included are problems such as “Creating multiple accounts associated with a single individual or entity; Name mismatch; Unreadable IDs; Non-Latin characters on the Government IDs; [and] Opening multiple support tickets.”

Signed by The Team, the post ends: “We trust that you understand Bittrex is committed to following the law and ensuring that it has a robust compliance program. We ask for your patience and cooperation throughout this process.”

Bittrex Customers Locked Out: Are Crypto Exchanges Ready for Bitcoin?

So, Criminals can Deposit but Not Withdraw?

Curious to outsiders, infuriating to customers, is the notion of the exchange taking orders, money, seemingly without issue … only to cover itself in cloaks of legalisms at withdrawal time.

Indeed, a user told Business Insider how “This is a big deal because when you sign up with Bittrex, they allow you to deposit funds into your wallet and even allow you to trade without Verification. But then you cannot withdraw your funds.”

The exchange has been around since 2014, and is based in Las Vegas though its mailing address is Seattle. Its daily trading volumes hover near 1 billion USD. As of this writing, it ranks second in daily volume among exchanges.

Bittrex Customers Locked Out: Are Crypto Exchanges Ready for Bitcoin?

Though not Better Business Bureau (BBB) accredited, Bittrex nevertheless has a dedicated page of mounting complaints. Users have gone public with their stories, and most have documented something like the following, “Last night I tried to withdraw and got this: ‘Unverified account withdraw limit has been reached. Please try again in 24 hours. To increase your limits, please verify your account,’” Russia Today noted. There’s even a Twitter hashtag, #BittrexTrouble.

These are not the first problems for Bittrex, nor are they alone in this regard. Bitcoin’s price, as well as the value of the crypto space generally, has risen beyond expectations. It could just be the case of not being prepared. In these pages, flashes and run-ups were reported at Kraken, Coinbase, Tether, Gemini, among others.

Problems like these are not only worrisome for those unable to access their funds, but they’re also excuses for tighter government controls and regulations. With Wall Street and assorted whales headed crypto’s way in the coming months, readers can be sure such problems will not be tolerated.

As a matter of plain justice, however, in a volatile market, losing precious seconds, much less weeks or months, could literally financially break enthusiasts.
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Bitcoin Price Reaches Another Peak Crossing $15,000

On December 7, at 9 am EDT the price of bitcoin broke a new record as one BTC is now worth US$15,000 across global exchanges. Bitcoin trade volume has been exponential with over $14.7Bn BTC being swapped on trading platforms worldwide.

 

Bitcoin Reaches $15,000 Commanding a $250Bn Market Cap

The price of bitcoin has been on a tear over the past week and even more so during the past three days. In the last 72-hours, the price has moved over $3,000 in gains, and markets are showing feverish buy support. On December 6 when the price tackled $13K and then $14K, a large portion of volume stemmed from South Korean exchanges, most notably Bithumb. The KRW volume has dropped a touch, and the EUR has gained some significant steam. However, the Japanese yen still dominates bitcoin’s global markets at 47 percent. The top exchange today trading the most BTC is Bitfinex, as Bithumb has settled back into the second position. Following the Korean exchange is GDAX, Bitflyer, and Coinone. On Bitstamp, one bitcoin is roughly around $15,200 at the time of writing.

Bitcoin Price Reaches Another Peak Crossing $15,000
Bitcoin trade volume among global exchanges has been over $14.7Bn in the past 24-hours.

Technical Indicators

Looking at charts show the price has been extremely volatile with large swings over the course of the past 24-hours. The two Simple Moving Averages (SMA) still have a nice gap, but the 100 SMA and 200 SMA look as though they are getting closer. This indicates some sell-off may happen soon. Order books show massive resistance beginning at $15,300 all the way to $15,700. If bulls persist in breaking these zones, then the price could go upward even more at warp speed. Again since our last price report, charts indicate that buy walls are much thinner than the sell wall side. Which means the price could slide downwards with ease, and not much resistance on the way down. At press time there’s a strong foundation around $13,400.

Bitcoin Price Reaches Another Peak Crossing $15,000
The price of bitcoin surpassed $15,000 per BTC across global exchanges on December 7, 2017, at 9 am EDT.

The Verdict

Bitcoin proponents are either super happy or extremely skeptical as a fast run up like this one is causing some concern for a deep correction. Some bitcoin proponents believe the time has “finally come” and bitcoin is cementing itself into history. Others believe the decentralized currency has passed through a phase of maturity and is searching for its “fair market price.” Then there’s those speaking the word “bubble” regularly, and they expect bitcoin and cryptocurrency markets, in general, to burst at the seams.

Then there are those who think institutional money is coming into bitcoin due to the upcoming futures markets coming shortly from Cboe, CME Group, and other firms that have expressed interest. Whatever is driving this demand is causing individuals to buy up bitcoin at the highest price it’s been all year. And $15K per bitcoin is quite the feat!

Where do you see the price of bitcoin heading from here? Let us know in the comments below.

Disclaimer: Bitcoin price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”