Early in July this year, about $3.1 million USD in Tether stablecoins was stolen from a Taiwanese man’s account. This was the biggest cryptocurrency theft in the country and continues to make news even today about the risks associated with supposedly secure digital assets.
There’s always been an investment risk when it comes to cryptocurrency, even a stablecoin like Tether. However, personal accounts are supposed to be incredibly secure and very safe from hacking. The victim, Lui Kun-Hung, said that is cell phone and his employees’ cell phones were hacked, and the hacker stole passwords from those devices to access his account.
When he noticed several unauthorized transfers from his tether account, Kun-Hung changed his password multiple times, but to no avail. The money was gone, and local authorities are still looking into the case, trying to hunt down the hackers.
How This Has Affected Tether
Tether is tied to the US dollar, so its value tends to replicate what the US dollar is doing. That being said, Tether is a digital asset, and if it doesn’t look secure, that’s going to affect how many people are trading this coin and even where it is accepted. Various digital currency exchange platforms have the option to drop or add cryptocurrency as they see fit.
Tether is currently seeing a 24-hour trade volume of $92.94 billion USD, which is very healthy for this stable coin. For most of its lifespan, Tether has stayed right around the $1 mark, with a significant spike in April of this year. Other than that, however, it hasn’t moved much from its $1 level, since its value is mostly dependent on what the US dollar is doing. Tether can lag behind the US dollar a little bit and sometimes get ahead of it, depending on circulating supply and other factors.
Tether is currently under fire for reports of market manipulation, which is part of the reason why Canada has banned it from two separate digital currency exchanges. This has nothing to do with the theft in Taiwan, and there are larger factors at play that potential investors should be aware of. Tether is going to have some trouble breaking into new markets because of the scrutiny surrounding it, and investors should be looking at those factors as well as any potential security issues.