China‘s ‘Bitcoin City‘ Hit by Theft of Stablecoin Tether103

The Chinese city of Putian, known for its embrace of digital assets and its nickname as "Bitcoin City," has been rocked by a major theft of the stablecoin Tether (USDT). According to local reports, over $100 million worth of USDT was stolen from a cryptocurrency exchange in the city in late February.

The exchange, identified as Putian Digital Currency Exchange, confirmed the theft and said that it is cooperating with law enforcement authorities to investigate the incident. The stolen funds were held in Tether's ERC-20 token, which is pegged to the US dollar and widely used in the cryptocurrency market.

Putian has emerged as a hub for cryptocurrency trading in recent years, with numerous exchanges and mining operations setting up shop in the city. However, the recent theft has raised concerns about the security measures in place at local exchanges and the vulnerability of stablecoins to hacking attacks.

Tether is one of the largest and most popular stablecoins in the world, with a market capitalization of over $70 billion. While stablecoins are designed to provide stability and reduce volatility in the cryptocurrency market, they have also become a target for hackers due to their large value and perceived ease of theft.

The theft of USDT from the Putian exchange is the latest in a series of high-profile stablecoin hacks in China. In December 2022, over $60 million worth of USDT was stolen from the exchange in Shenzhen.

The incidents have prompted Chinese authorities to increase scrutiny of cryptocurrency exchanges and the trading of stablecoins in the country. The People's Bank of China (PBOC) has warned that stablecoins pose financial risks and has urged investors to exercise caution.

Despite these setbacks, Putian remains committed to its status as a "Bitcoin City." Local officials have said that they are working to improve security measures and attract more cryptocurrency businesses to the city.

The theft of USDT from Putian Digital Currency Exchange serves as a reminder of the importance of robust security measures at cryptocurrency exchanges and the vulnerability of stablecoins to hacking attacks. As the use of cryptocurrencies and stablecoins continues to grow, it is crucial for investors and regulators to be aware of the risks involved.

2024-11-18

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