Tether has allegedly received a ransom note demanding 500 Bitcoin (BTC). The note’s author claims that if Tether doesn’t pay up, he or she will publish documents that could “harm the bitcoin ecosystem.” The stablecoin issuer tweeted about the alleged ransom note on Sunday: “While we believe this is a pretty sad attempt at a shakedown, we take it seriously,” the company wrote, adding that “we are not paying.”
PSA: Forged documents are circulating online purporting to be between @tether_to personnel and reps of Deltec Bank & Trust and others. The documents are bogus. 1/5
— Tether (@Tether_to) February 28, 2021
Tether has refused to pay the ransom.
The USDT stablecoin issuer noted, “We have reported the forged communications and the associated ransom demand to law enforcement. As always, we will fully support law enforcement in an investigation of this extortion scheme.” Stuart Hoegner, General Counsel at Bitfinex, further revealed that they had forwarded the threats to law enforcement agencies. “We are not in a position to provide you with a copy of the communication at this time,” he added. Earlier, CoinDesk reported that Tether’s market cap had seen a veritable explosion throughout the past year.
Tether continues to be surrounded by controversies.
Tether has been the subject of some controversy over the years. Several from the crypto industry, cryptocurrency skeptics, and the New York Attorney General (NYAG) have all voiced doubts about Tether’s solvency. Most recently, unverified documents showcasing an alleged email thread between a Tether employee and representatives Bahamanian bank said to hold USDT reserves have surfaced on the internet. The documents have once again raised questions about Tether’s solvency. However, Tether denied their legitimacy in the same Twitter thread exposing the 500 BTC extortion attempt.