Story - Tether Hacked for $30m
https://tether.to/tether-critical-announcement/
Tether is a cryptocurrency built on the Omni protocol.

http://www.omnilayer.org/

The Omni protocol is a toolbox that allows you to create new tokens on the Bitcoin blockchain. The benefit being that you inherit all the security and compatibility of the Bitcoin network.

https://tether.to/

Tether is designed to be a price stable coin, meaning 1 USDT should always be worth 1 US dollar.

That is achieved by the Tether Corporation keeping a minimum of 1 US dollar in their bank account for every 1 USDT that they issue. Simple idea right.

The obvious question right out of the gate and actually one that keeps coming up, is how do we know that they have enough USD dollars to back the tokens they are using?

While that is not the subject of this video, you can go back and watch the previous video I published on the 6th of October 2017 after Tether issued their last audit.

The link to that video is in the description and the Tether segment starts at 4 minutes and 18 seconds

https://youtu.be/cmz6vWsL2ck?t=4m18s

The reason why Tether are in the news again today, is not because of the audit controversy, although that has come up again since my previous video on it, today Tether themselves have come out with an announcement of a hack.

https://tether.to/tether-critical-announcement/

Or as they tactfully put it here “we discovered that funds were improperly removed from the Tether treasury wallet through malicious action by an external attacker”.

Well, at least it wasn’t an inside job then.

Now because Tether is a token on the Bitcoin network all transfers are public. That means they know the address that the funds have been moved to.

Their proposed solution to this is
That all platforms that make use of the Tether token should update to a tweaked version of the Omni protocol that freezes these funds, meaning those Tether tokens cannot be transferred,


Tether Corporation will refuse to redeem any of these stolen tokens for US dollars they have in their bank account, making those specific tokens worthless, which means Tether tokens are not exactly fungible


They are working with the Omni Foundation to figured out a way to forcibly get those tokens back, meaning they are looking at doing an Ethereum style claw back of stolen funds like when The DAO was drained of investors funds

Whichever way you slice it, it seriously erodes the credibility of the Tether token, and that’s even before we include the controversy around the number of US dollars backing them.

What is not clear to me here, and perhaps you techies can help me out with this in the comments, I’m not clear on whether this was a flaw in the Omni protocol that Tether use to create Tether tokens, or whe
...
https://www.youtube.com/watch?v=HSJ972hS35A