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Homepage / News November 21, 2017 140 views

Blockchain Data Hyperlinks Tether &#039Attack&#039 to 2015 Exchange Hack

Blockchain Data Hyperlinks Tether &#039Attack&#039 to 2015 Exchange Hack

These behind the alleged theft of $31 million worth of Tether’s US dollar-backed tokens have been also involved in a higher-profile hack two years ago, a cybersleuth has concluded from obtainable blockchain information.

The organization behind the dollar-backed cryptocurrency tether claimed Monday night that it had been robbed, sparking a new wave of speculation about the token, its backers and its alleged part in recent bitcoin market movements.

And, as may well be expected, the availability of public blockchain information for the transactions involved led a number of observers on the internet to trace them back in an attempt to discover answers.

In&nbspposts on the r/bitcoin and r/cryptocurrency subreddits, a user going by the deal with SpeedflyChris&nbsphas linked the alleged Tether attack to&nbspthe $five million hack of Bitstamp in 2015. As reported at the time, workers at that Luxembourg-based bitcoin exchange fell victim to a weeks-lengthy phishing attempt, eventually major to the loss of some&nbsp18,000 bitcoins.

At the heart of SpeedflyChris’ evaluation is this wallet, for which transactions from Bitstamp can be noticed dating back to January 2015.

As SpeedflyChris notes, the address in query was used to send bitcoins to one more address that later received tokens from Tether’s “treasury” wallet, in a series of 21 transactions more than the course of Nov. 19.&nbspIncluded in the alleged theft of the roughly $31 million in tethers was 5 BTC, which ended up in&nbspthreeseparatewallets&nbspas Tether makes use of Omni, a bitcoin-primarily based software program protocol to effectively “tag” coins to serve distinct purposes.

Separately, SpeedlyChris’ analysis indicates that the principal address in query is also connected to thefts that occurred at the China-primarily based bitcoin exchange Huobi in 2015, as effectively as a quantity of transactions to peer-to-peer bitcoin exchange LocalBitcoins.

What now?

In spite of the pseudonymous nature of public blockchains like bitcoin, the data gives a level of transparency into the movements of the funds involved.

However the absence of identifying information beyond wallet addresses signifies that on the internet sleuthing has its limitations.

On the other hand, in the event of a law enforcement investigation, such data could eventually come into play.

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Published at Tue, 21 Nov 2017 20:00:39 +0000