Has Tether (USDT) ever been hacked?

In 2017, Tether Limited, the company that issues Tether, was hacked and $30 million worth of USDT was stolen. The hacker was able to exploit a vulnerability in Tether’s code to mint new USDT tokens without having the corresponding funds in reserve. Tether Limited was able to recover the stolen funds, but the incident raised concerns about the security of Tether’s reserves.

In 2019, Tether Limited was accused of manipulating the price of Bitcoin. Tether Limited was accused of selling large amounts of USDT in order to artificially drive down the price of Bitcoin. The accusations were never proven, but they raised concerns about Tether’s financial stability.

In 2021, Tether Limited published a quarterly report that showed that its reserves were 76% backed by cash and cash equivalents, and 24% backed by other assets, including commercial paper, secured loans, and corporate bonds. The report also showed that Tether had $1.6 billion in excess reserves.

Overall, there have been several incidents that have raised concerns about the security of Tether. It is important to do your own research before using Tether.

Here are some of the risks associated with Tether:

  • Tether Limited has been accused of misleading investors about its reserves. In 2017, the New York Attorney General’s office filed a lawsuit against Tether Limited, alleging that the company had lied about its reserves. The lawsuit was settled in 2021, with Tether Limited agreeing to pay a $18.5 million fine and to provide more transparency about its reserves.
  • Tether’s reserves may not be fully backed by US dollars. Tether Limited has never released an independent audit of its reserves. This means that it is possible that Tether’s reserves are not fully backed by US dollars, or that they are not held in the form of cash.
  • Tether is a centralized asset. Tether Limited is a company that controls Tether. This means that Tether is not as decentralized as other cryptocurrencies. If Tether Limited were to go bankrupt, it is possible that Tether holders would lose their funds.

Overall, Tether is a stablecoin that has been accused of misleading investors about its reserves. It is important to do your own research before using Tether.