When the CTO Paolo Ardoino reported that Tether’s website, Tether to, was being attacked by a huge distributed denial of service attack, it raised a great deal of concern for the largest stablecoin in the world which is Tether. “One of their attempts had already been made. We receive roughly 2,000 requests every five minutes on a daily basis, which is about normal. As a direct consequence of the attack, we attained a required rate of 8 million per minute, “he had written.
In addition, Arduino informed them that Cloudflare had successfully neutralized the attack, but the “I’m under attack mode” had been left active as a precautionary measure because it was deemed necessary to do so.
According to the top executive, the new security measure “won’t influence the ability to redeem,” which may also be translated as “will not have an impact on the capacity to redeem.”
The platform that makes use of blockchain technology recently issued a blog post in which it debunked rumors regarding its holdings of commercial paper. The piece can be seen on the company’s official website. There was a popular rumor going around that 85 percent of Tether’s reserves are comprised of commercial papers, which are reportedly being swapped at a discount of 30 percent in China and Asia. This particular rumor was circulating because of the pervasive nature of the previous statement.
The corporation then stated that those plots were part of a “coordinated” strategy to gain money during the testing period. The company made this assertion after the fact.
“Tether condemns such tactics, which frequently result in ordinary users bearing the brunt of the damage while a small number of coordinated funds gain their profits,” the website asserts.
“Tether Has Never Failed to Sustain Sufficient Reserves” The United States Commodity Futures Trading Commission levied a fine of $41 million against Tether in 2021 for what it deemed to be “untrue or misleading statements and omissions of material fact” regarding the company’s reserves. This was in response to the statement, “Tether Has Never Failed to Sustain Sufficient Reserves.”
The team’s statement mentioned that “it has always preserved enough reserves and has never failed to honor a redemption request.” The team also mentioned that the CFTC had just learned that “the reserves were not all in cash and all in a bank account titled in Tether’s name, at all times.” This was another point that was brought up by the team.
In addition, the organization published a report dated March 31 alongside its most recent blog post to calm additional worries that had been raised. The research provides further evidence that “almost 47 percent of total USDT reserves are now US Treasuries” and that “commercial paper makes up less than 25 percent of USDT’s support.”
After reports surfaced suggesting that it would be the next to go down in the market slaughter following the near bankruptcy issue experienced by the lending platform Celsius and the crypto hedge fund Three Arrows Capitals, Tether decided to disassociate itself as a final point of discussion. This decision was made after reports suggested that it would be the next to go down in the market slaughter.