The drama continues for Bitfinex and Tether.
Last week I wrote about how the New York Attorney General was going after both Bitfinex and Tether.
The NY AG alleges Bitfinex used Tether reserves to cover an $850 million loss.
The hits keep coming…
First, an affidavit came out from Tether’s general counsel, Stuart Hoegner, stating:
“As of the date [April 30] I am signing this affidavit, Tether has cash and cash equivalents (short term securities) on hand totaling approximately $2.1 billion, representing approximately 74 percent of the current outstanding tethers.”
What? Only 74% backed???
Then it came out that the U.S. Department of Justice has gotten its hands on part of the “missing” $850 million.
The Feds were able to seize the funds from a HSBC bank account.
Now, Bitfinex is trying to raise $1 billion in an initial exchange offering (IEO) for a token called LEO, which will be the utility token for the ecosystem.
Sure looks like they’re trying to fill a hole to me.
Meanwhile, USDT stays around $1… smh.
or Abra
and trade cryptos on Binance and Bibox...
And delegate SP with MinnowBooster
I wonder how it's will end up
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Well, technically, the NYAG is not part of "the Feds". Have you heard about the Treasury Department or the SEC or anyone higher than NYAG entering into the fray?
Yes, technically...
DoJ
Great info thanks
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