Stablecoin Issuer Tether Says It Is a Victim of a 500 BTC Ransom Demand Infoleak Threat – Security Bitcoin News


Just days after ending his long-standing feud with the New York Attorney General’s office, Tether says it is now the victim of blackmail. According to the stablecoin issuer, the blackmailers are threatening to release documents claiming “harm to the bitcoin ecosystem” if their request for 500 bitcoins is not met.

Tether doesn’t pay the ransom

However, in his statement dismissing the threat, Tether said the extortionists were trying to extort money using “forged documents.” According to Tether, the documents should show an interaction between Tether employees and representatives of Deltec Bank. However, on a Twitter thread, Tether says the 500 BTC the blackmailers want to pay by March 1st will not be sent.

The stablecoin issuer also says that a formal report of the ransom note has been presented to law enforcement agencies. Tether tweeted;

We reported the fake communications and the associated ransom note to law enforcement agencies. As always, we will wholeheartedly support law enforcement as they investigate this blackmail scheme.

In his own tweet, Bitfinex and Tether CTO Paolo Ardiono also reject the ransom demand. He reiterates the claim that while the attack appears to be aimed at Tether, the attackers’ main goal is to discredit Bitcoin and all cryptography.

Leaked emails

The CTO also shared a screenshot of a February 27 tweet by a user named Trolly McTrollface. According to the screenshot, McTrollface claims to be in possession of a leaked email from Tether to Deltec, which the user describes as “a crucial piece of the puzzle”.

Stablecoin Issuer Tether says it was a victim of a 500 BTC ransom demand

Upon completion of the long-standing investigation, the Attorney General’s Office (OAG) found that both Tether and Bitfinex “ruthlessly and illegally covered massive financial losses in order to keep their systems running and protect their bottom line.”

In its statement, however, the OAG only acknowledges that Deltec Bank, based in the Bahamas, is Tether’s banker. The OAG said nothing about the alleged email dated May 3, 2020, in which Tether employees asked Deltec representatives for help “to present their reserves in the best possible light”.

As a result, Tether describes the latest rumors and tweets as “a pretty sad attempt at a shakedown”.

What do you think of Tether’s latest situation? You can share your views in the comments section below.

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