The stablecoin issuer has faced many issues in the past fees days and has revealed that it won’t pay the ransom demanded by hackers. The digital asset space suffers from bad elements that hack into systems to demand payments in cryptocurrencies. The decentralized nature of cryptos has made it a preferred means for criminals to get payments without being traced.
Unlike many institutions that pay from the fear of having their data leaked, Tether says it won’t pay the ransom. The firm is currently in a difficult situation as it faced some legal problems with the New York Attorney’s office, which mandated the stablecoin to leave the city. The attorney does not want USDT to be traded in New York while fining Tether for its offenses.
Hackers demand $24 million from Tether
The stablecoin issuer recently revealed that some hackers had demanded around $24 million in Bitcoin to prevent private data leaks. The firm shared that it ignored the demands while adding that the deadline date already passed.
Hackers are starting 2021 with more data thefts, as they are known to steal data and sell to private buyers when the owner does not meet their demand. The hacker sent the demand to Tether on Sunday while giving the firm some days to settle the payment.
A threat accompanied the ransom demand, as the hackers said it would release the data if the crypto demand were not paid. The bad player also added that the release of the data would harm the Bitcoin ecosystem, but Tether does not seem to bother much about the threats.
Tether publicly told the hackers that it was not paying while adding the hacker’s Bitcoin address to the tweet. The firm has other important issues to handle beyond the hack, which might be the reason behind its refusal.
New York attorney bans Tether from operating in NY
The crypto firm also said it was not sure whether the threat is to extort it or to cause harm to the whole digital asset space. Tether added that those seeking to harm it are growing desperate. The company shared how it told authorities concerning the demanded ransom and how It will cooperate with law enforcers regarding the investigation.
The firm has more significant problems like the Bitfinex and Tether ban in New York, which is part of the company’s settlement and the New York attorney arrived at. The attorney also fined the firm a sum of $18.6 million.
The legal expert said that the sister firms, Bitfinex and Tether, were involved in cover-ups of financial losses to keep their scheme going. The law enforcers mandates tether to reveal its reserves every quarter to prevent deceit.
The stablecoin issuer has also to reveal its assets and even loans from other bodies. Still, the firm has not revealed its reserve content but has shared that the dollar reserve is on a 1:1 ratio. Experts believe that other states would be looking at Tether closely to prevent similar incidences from happening within their space.