Hackers Have Lots of Ways to Ruin a Bitcoin Trader’s Day: Gadfly By Bl

(Bloomberg Gadfly) — Saying is un-hackable is of small comfort to those who’ve lost money through cracks in its ecosystem of exchanges, intermediaries and money-raising schemes.

The latest theft in cryptoland is a reminder that the promise of security and liquidity is only that — a promise. This isn’t a systemic shock in the league of the Mt. Gox bitcoin exchange collapse, but it’s a warning that transparency and trust are rare commodities in this world.

The size and scope of the attack are small by historic standards, hence why Bitcoin’s price bounced back to $8,200 after sinking to about $7,800. About $31 million was stolen from Tether, a Bitcoin peer that issues U.S. dollar-backed tokens for easier trading on crypto exchanges, and sent to what the company calls an unauthorized bitcoin address. That’s more manageable than the collapse of Mt. Gox — hacked for $450 million — or last year’s $65 million theft at another exchange Bitfinex.

But the Tether raid shouldn’t be dismissed…

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