New York State Attorney General Letitia James’s office called shenanigans yesterday on Bitfinex and Tether’s argument that it could spend $5 million defending itself from accusations of fraud.
The Big Picture: Retail suckers will pay for the Bitfinex/Tether fiasco
It’s one of the worst kept secrets in crypto: The recent rally in Bitcoin came from a massive issuance of tethers.
Bitfinex and Tether say New York Attorney General risks making them unable to pay their bills
In seeking freedom to pay employees and contractors, Tether attorneys suggest the stablecoin issuer mixes reserve and operating funds
Lawyers for iFinex, the parent company of Tether and cryptocurrency exchange Bitfinex, told the New York Supreme Court on Monday that the language of New York State Attorney General Latitia James’ proposed injunction on Tether using dollar reserves backing its USDT stablecoin could prevent it from making payroll or paying bills.