Tether and Bitfinex deny the allegations of the New York Prosecutor’s office
Home News Tether and Bitfinex deny the allegations of the New York Prosecutor’s office
Marcus Misiak –
The last two days meant for crypto-investors a small shock, after the market was the last few weeks on the upswing. The accusations against Bitfinex, the stock exchange had misappropriated funds intended for the coverage of Tether, that unsettled the market and caused a significant setback in the courses.
Pre-testers, was published a Letter from the New York office of the public Prosecutor, claiming that Bitfinex, Tether has used funds to cover losses to users of pay off. According to the Details of the report, the New York raises public Prosecutor’s office Bitfinex – the close relationship and Overlap of the guide with the Stablecoin-company Tether in front of shares, losses in the amount of $ 850 million, with funding to be covered, to cover the USDT coin.
The Stablecoin Tether (USDT) should have a 1:1 support by the US Dollar. For each new USDT, which has been shaped and brought to the market, it was assumed that Tether held a Dollar in Reserve to support the price of the coin. However, as of a hand full demand of the Community members was discovered, changed the Tether in March 2019 quietly, his USDT policy by each of the USDT does not have to be only tied to cash, but other assets may include values and claims of the Tether to a third party or loans.
To be true the allegation of the New York office of the public Prosecutor, could Tether to a shift in Funding responds to extensive losses due to the cryptographic exchange to cover Bitfinex – an amount that would correspond to 30 percent of the current market capitalization of USDT.
As a response to the allegations of the NYAG published Bitfinex and Tether yesterday a statement in which the companies explain that the issued command is preceded by happened to notice and hearing and in “bad Faith”, and with “false claims” dotted. In the Declaration of 26. April said the two companies:
The court records of the New York attorney General have been written maliciously and are full of false claims, including an alleged loss of $ 850 million in Crypto Capital. On the contrary, we were informed that this crypto amounts of capital will be lost, but actually secured were seized. We have been working actively to our rights and remedies, to exercise and to release these funds.
The joint statement also claims that the New York Prosecutor’s office is apparently a smear campaign against Tether and Bitfinex, and anxious efforts to “undermine” so that Bitfinex can give more money to customers. Tether and Bitfinex seem to shift the blame to the NYAG. The joint statement from Bitfinex and Tether also includes a proposal to challenge the court filing and to clarify the allegations,
Both Bitfinex, as well as Tether financial strong point. And both Bitfinex, as well as Tether are committed to fight this gross Exaggeration of the New York office of the public Prosecutor.
Featured Image: Wit Olzeswski | Shutterstock