Cryptocurrencies briefly tumble on news of peers hack
News that the cryptocurrency Tether lost $31,000,000 to hackers sent cryptocurrencies into a tailspin early Tuesday morning.
Bitcoin prices dropped about 5 percent, bottoming out about 1 a.m. EST.
Ethereum dropped about 5.5 percent and Bitcoin spinoff, Bitcoin Cash, dropped nearly 6 percent. All prices had rebounded to more modest declines by mid-morning.
Tether is a bridge between traditional fiat currency, like dollars or yen, and the world of cryptocurrency. The price of tether is tied to fiat currency, simplifying some of the legal difficulties cryptocurrency exchanges have trading physical money for its digital counterpart.
Tether has announced it will not redeem any of the stolen currency for cash to limit the value of the theft. It also announced plans to help recover some of the lost funds.
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