According to Paolo Ardoino, Chief Technology Officer at Tether, the website of the largest stablecoin in the market suffered a denial of service (DDoS) attack this Saturday (18). Additionally, the attackers reportedly demanded a cash ransom demand to stop the attacks.
Going further, Ardoino reiterated that Tether (USDT) “is safe”, after all the token runs on blockchains like Ethereum and Tron. Consequently, the attack was quickly mitigated and only the site presented problems to visitors over the weekend.
With the market wary of stablecoins following the collapse of TerraUSD (UST), Tether also announced that it will be working with one of the top 12 accounting firms in the world to provide transparency to investors.
Tether suffers a DDoS attack
Although the Tether site is used to 2,000 requests every 5 minutes, that number jumped to 8 million this Saturday (18).
According to the CTO of stablecoin USDT, the reason was an attack, followed by a ransom demand to stop them.
“This morning, Tether received a ransom demand to prevent massive DDOS attacks. They have already tried it once. In a normal day, we have around 2k orders/5min. The attack brought us to 8 million requests/5 minutes. »
This morning @Tether_to received a ransom note to avoid mass DDOS.
They have already tried once.
On a normal day we have about 2000 requests/5 minutes
The attack brought us to 8M reqs/5min. pic.twitter.com/rWEan5VNFX
-Paolo Ardoino (@paoloardoino) June 18, 2022
Subsequently, Ardoino notes that only the Tether website was affected, however, the issue was quickly mitigated. USDT, on the other hand, has continued to function normally on the various blockchains and exchanges where it is transacted and traded.
Tether in decline
The collapse of the algorithmic stablecoin TerraUSD (UST) in May, it left many scars on the market. Chief among them was the lack of trust in projects with little transparency, including Tether itself.
Despite still being the biggest stablecoin on the market, Tether has already burned 15 billion USDT tokens, equivalent to 77.25 billion BRL, in the past month.
On the other hand, its main rival, USD Coin (USDC) issued around 8 billion tokens (41.2 billion BRL) during the same period. Today, the difference between the two is only $12 billion, however, Tether’s transaction volume is still almost 10 times higher.
Attachment to perform a fund audit
In an attempt to offer greater transparency over the funds in its possession, Tether announcement this Monday (20) who will audit the funds. Asked why they didn’t choose one of the top four accounting firms, called big fourPaolo Ardoino argues that the process would be more difficult.
“I think it’s one of the top 12 so it’s not too bad”Paolo Ardoino told EuroMoney. “The Big Four are a bit more cautious about providing a full audit when the rules are unclear.”
Therefore, the action of the company can be associated with the fear of being replaced by another. Despite this, the choice of the accounting firm did not give much confidence to the most skeptical.