StablecoinSafeDollar Hit by Cyberattack, Crypto coin safety guide, Cryptocurrency tips

StablecoinSafeDollar Hit by Cyberattack

1 Jul 2021

StablecoinSafeDollar Hit by Cyberattack

SafeDollar, a DeFistablecoin has suffered some sort of cyberattack according to a statement on their Telegram channel. They said they have paused all activities for the main time and investigations are underway at the moment but what has been the effect of this cyberattack on the crypto coin?

The effect of this cyberattack value of SafeDollar has seen it fall to $0. The cyber attackers used tether, USD coin and to push their attack and currently handicap the cryptocurrency service. Remember that stable coins are those cryptocurrencies that aim to remain stable and have low volatility so people can invest in them.

This attack on them has put their business at risk according to Crypto Engine and made them vulnerable to a huge amount of loss. The 202,000 USDC (USD Coin) and 46,000 USDT (Tether) stablecoins drained from SDO’s smart contract today is worth around $248,000 in total, according to Yuanpay Group, which adds that as a result, SafeDollar’s price which was supposed to always be equal to $1 since it’s a stablecoin has plummeted to zero.

This recent attack has left the company in a wreck and in dire need of support to afford compensation and moving on plans. They have said they will communicate their ideas on the way forward later through a transparent response to the SafeDollar community but how can the issue of cyberattack be controlled and handled against future attacks?

How stablecoins can protect itself from cyberattacks

The potential of stablecoins in the financial ecosystem lies deeply in the solemn promise that the blockchain technology holds in the industry, which is first, its capability to deliver on financial inclusiveness, in terms of persons and also in terms of services (additional financial services like credit, saving, insurance etc); and secondly to remove any cross border barriers owing to faster and inexpensive payment systems.

Money laundering, terrorist financing and other forms of illicit finance may thrive in the new environment if the stablecoins are not effectively regulated and supervised. To ensure that stablecoins is free from any form of attack and the safety from fraud, theft and cyber-attacks, public authorities should require that operational and cyber risks from stablecoins be mitigated through the use of appropriate systems, policies, procedures and controls.

It is pertinent now that stablecoins has to be subject to laws, regulation and guidance that will keep it off the radar of crypto coins that fall within the scope of international standards on operational risk.

Also, stable coins operators need to have a meeting with central banks, financial regulators, data protection authorities and competition authorities to curb the activities of these cyberattacks.

StablecoinSafeDollar Hit by Cyberattack Conclusion

The risks and opportunities inherent in stablecoin offerings are likely to make it inevitable for issuers to take the subject of security seriously. The EU Commission’s Digital Finance Package includes legislative proposals for an EU regulatory framework on crypto-assets security and a regulatory framework on digital operational resilience. Operators can subscribe to this digital finance package.

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