A Chinese cybersecurity firm which goes by the name SlowMist recently traced a Tether double spend vulnerability as dated on June 28, the cybersecurity firm tweeted that they were able to send USDT to an unnamed exchange without the correct field values on the transaction, which means that individuals may be able to credit the tokens without actually having sent them, following a double spend transaction.
A few days ago Tether was on news, Bitfinex was allegedly accused of driving up the price of Bitcoin by issuing more tether which was not pegged by USD.
A Redditor who claims to be an Omni founder, the platform on which Tether was created, made the following statements
Omni founder here. In general, I designed Omni so that to double-spend an Omni asset, you would have to double-spend bitcoin.
If I’m translating this correctly, it appears that what happened here is that an exchange wasn’t checking the valid flag on transactions. They accepted a transaction with valid=false (which they should not have), and then the second “double spend” transaction had valid=true, which they also accepted.
Further adding he said
Unless I am missing something, this is just poor exchange integration. One of our devs already replied pointing to our best practices for integration
CryptoMedication posted a pic of the error
Later SlowMist also tweeted that the double spend was not the issue of USDT but rather some issue related to the exchange platform’s database, stating that the database does not strictly verify the status of the ‘valid’ parameter and there is no reason for panic.
SlowMist tweeting, there is no reason for panic. Image Source: Twitter
The FUD that happens in the crypto-space is virtually never seen anywhere same goes with this Tether double spend issue, but the retrospective effect of this kind of news has a lot of impact on the investors where these investors rely heavily upon the news in order to carry out their investment decisions, in simple terms the news control the movement of the market, we feel that there is a thin line of difference where it gets really unethical.
Image Source for the featured image: hacked.com
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