SlowMist, a Chinese cyber-security technology firm has discovered a double-spending flaw in Tether (USDT). According to a tweet by the Chinese cyber-security firm, they succeeded in sending USDT to an anonymous exchange with the right field codes on the transaction Although this seems very petty, its implication can be very grave. One of the implications of Tether double-spending flaw is people can get credited for tokens that they were not responsible for sending. When this happens, it will result in a phenomenon called double-spent.
What is the Explanation for this Error
As a result of the tweet form SlowMist, the founder of the platform on which USDT was developed has made an attempt to explain this unfortunate situation. These are his words “It appears that what happened here is that an exchange wasn’t checking the valid flag on transactions. They accepted a transaction with valid=false (which they should not have), and then the second “double spend” had valid=true, which they also accepted. Unless I am missing something, this is just poor exchange integration.”
Although Tether double spending flaw is hugely regarded as a Tether issue, there are chances that this is more of an exchange issue rather than a Tether issue. Now, this challenge might be called a Tether double-spending issue, however, there are chances that this loophole can be exploited over and over again.
To further prove that Tether double-spending flaw is an issue that is more associated with exchanges and not Tether, OkEx, one of the biggest exchanges in the world carried out a couple of tests after the tweet by SlowMist which notified every one of the loopholes, and it came to a conclusion that OkEx is not affected by this double spending issue.
Due to the fact that this loophole was discovered recently, there is no report of it being remedied yet.
SlowMist is a cybersecurity technology firm that is built around blockchain technology. This Chinese security firm is one of the largest employers of Chinese cybersecurity gurus. This firm is basically concerned with the tracking of underground trackers, security audits, and defence deployments.
As one of the biggest cybersecurity technology firms in China, SlowMist has successfully identified vulnerability in various technologies which involve blockchain. Popular among them is the Tether double-spending flaw which was recently discovered and announced via Twitter, as well as the smart contract flaw which was one of the loopholes of the Educoinproject.