One of the biggest mysteries in crypto revolves around token issuer Tether. Crypto enthusiasts—and crypto journalists— have long tried to figure out exactly what hard assets comprise the massive reserves that tether, as a “stablecoin,” is required to keep its dollar for dollar ratio in backing bitcoin with American dollars. The question is not academic. Tether has more than $78 billion worth of tokens in circulation and is by far the largest stablecoin issuer, accounting for about half of all transactions against bitcoin on centralized exchanges. Press play to hear a narrated version of this story, presented by AudioHopper. If the market began to question the stability of those dollar…
-
-
Bitfinex, Tether again face market manipulation accusations
The embattled cryptocurrency exchange and stablecoin issuer jointly announced that a “meritless and mercenary lawsuit” is coming.
It seems the New York Attorney General is not the only person accusing sister companies Bitfinex and Tether of breaking the law. A paper accusing the companies of market manipulation designed to boost the price of Bitcoin will be published soon.
-
New York State Supreme Court building in Lower Manhattan showing the words "The True Administration of Justice" on its facade (via Shutterstock).Judge Joel Cohen orders New York Attorney General Letitia James to prove jurisdiction over Bitfinex and Tether
The New York State Supreme Court may throw out the charges if no New Yorkers were harmed
A court on May 22 ordered New York State Attorney General Letitia James to prove her office has the right to sue Bitfinex and Tether for fraud and securities law violations.
-
Fake Tethers under fake bitcoins. It's an illustration of what may be happening (Photo via Shutterstock).Bitfinex tells court Tether invested part of dollar reserves in Bitcoin
The revelation came in an attempt to dismiss a fraud and securities law violation suit brought by New York State Attorney General Letitia James
The Tether stablecoin is backed in some part by bitcoins. David Miller, an attorney for Tether’s sister firm, cryptocurrency exchange Bitfinex, revealed in court last week that Tether has invested “a small amount” of the reserve dollars backing the tethers (USDt) in bitcoins (BTC). He added that the company had also invested in other undescribed assets.
