Rumors on Tether’s USD-Pegged Cryptocurrency (USDT) Coding Error Found False

Rumors on Tether Coding Error Seem to Be All False

During the last days there has been a rumor about an error in Tether’s (USDT) code that would allow individuals to double spend funds. Apparently, the information about that problem seems to be false.

Tether’s Problems

Slow Mist, an important blockchain security firm, and Tether, confirmed that the issue is actually related to an exchange integration flow. Slow Mist explained on Thursday in a post, that when a specific exchange is performing a transaction with USDT, the company needs to verify that the transaction details are true.

If the exchange does not do that, then a ‘false recharge’ occurs, that means that the recipient and the sender are credited with the Tether tokens being transacted. Some individuals were commenting on the issue saying that sender and receiver had the same amount of currencies and the network confirmed that.

The company mentioned that the problem was related to an attack on a cryptocurrency exchange. On Twitter, Slow Mist gave an explanation about this situation uploading an image with all the information about it.

交易所在进行USDT充值交易确认是否成功时存在逻辑缺陷，未校验区块链上交易详情中valid字段值是否为true，导致“假充值”，用户未损失任何USDT却成功向交易所充值了USDT，而且这些 USDT 可以正常进行交易。
我们已经确认真实攻击发生！相关交易所应尽快暂停USDT充值功能，并自查代码是否存在该逻辑缺陷。 pic.twitter.com/EPzZIsZFzH

— SlowMist (@SlowMist_Team) June 28, 2018

Tether explained that the issue is not related to USDT’s protocol. The company informed CoinDesk that it was due to a faulty integration of Tether at the exchange level.Tether explained:

“While we can’t exercise much control over how exchanges execute the integration process, we’ve provided integration guides in this instance to help solve the issue and will continue to assist any other exchanges in their USDT integration process,”

It is important to mention that Slow Mist has certified that the issue is related on how exchanges integrate the USDT protocol for transactions. The protocol itself is okay and without flaws that could compromise funds.

Some cryptocurrency exchanges like OKEx and Huobi verified that they did not have this integration problem.

At the same time, LBank said that it investigated the issue and found that it was not vulnerable to it. But, the exchange decide to close the USDT recharge temporarily.

This is not good news for Tether that has been accused by some experts about manipulating the market. Additionally, Tether has been under investigation by US regulatory authorities due to the fact that Tether says that behind each USDT token there is 1 USD dollar. Until now, these funds have not been proved and there are doubts whether the company is lying or not.

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