It appears a cybersecurity firm has discovered a possible vulnerability in Tether (USDT) that could expose the cryptocurrency to a double-spend attack.
Chinese firm Slowmist announced today in a tweet that they had managed to send USDT to an unnamed exchange without having to enter correct values in certain fields on the transaction. In practice, this could result in an incorrect credit of tokens to individuals without needing to spend them.
An explanation for the error was provided by OmniLayer, the platform on which USDT was created. They believe a certain flag within the transaction was not properly set causing two transactions to be accepted and resulting in a double spend.
The world’s second largest exchange OKEx responded to the error by running some tests and assuring it is not susceptible to the vulnerability. It posted a statement on its website assuring users that their assets are safe. Popular blogger and crypto enthusiast CryptoMedication also weighed in on the issue, saying the problem could have serious implications as it could have been exploited “ad infinitum”. However, he adds, it seems to be an exchange rather than Tether issue.
In a further update on Reddit, the OmniLayer founder confirmed that the issue is at the exchange side and that so long as the transaction is marked as valid users shouldn’t have anything to worry about.
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