Tether (USDT) Responds To Online Criticism After $31 Million Hack

Tether has issued a response in the wake of recent criticism directed at the platform. The brand stated that it is in the process of creating a new round of online, or “hot” wallets that are more secure, as well as amending changes to its terms of service.

The core of Tether’s problems stems from its release of the USDT, which is pegged to the United States dollar. USDT was intended to work in a similarly decentralized fashion to Bitcoin, but without the token’s volatility.

The recent attack on the platform has led to speculations about its solvency. There have been other issues talked about as well, such as Tether’s oversight of its cryptocurrency.

Tether has denied allegations that it is insolvent, and went on to say that each token is guaranteed through physical dollars kept by the firm.

In press release, Tether stated that it is cognizant of the many doubts and questions the community has about about the company, but it is unable to release more information as it is currently under investigation.

Friedman LLP Investigates Tether

Friedman LLP, who are an external accountancy firm, stated that the accusations made towards Tether were “warrantless.”

“We appreciate that the community is patiently waiting for an answer. However, this process cannot be rushed. Additionally, the process that Friedman has followed is acceptable and well-above professional standards.”

As part of Tether’s statement, they also spoke about their most recent hacking attempt to their servers. This apparently provoked a prompt response from the company, causing Tether to overhaul their digital wallets. Tether said that it had an enormous workload to finish, so it may take awhile for transactions to be processed.

Tether has disabled new registrations, and has dissuaded its users from depositing additional monies into their wallets running its legacy software.

On the issue of not serving customers in the US, Tether failed to provide specifics as to why this is the case.