Regulators have waited too long to act on so-called stablecoins, to the point where exposure to schemes like that being run using Tether has infected the entire digital asset industry—and even beyond it.
The NYAG statement is highly critical of Bitfinex and Tether, accusing them of “recklessly and unlawfully [covering up] massive financial losses” and “illegally trading virtual currencies in the state of New York.”
The loan was taken to cover for the loss of $850 million in co-mingled client and corporate funds caused by entrusting its liquidity to a Panamanian company called Crypto Capital, according to NYAG.
The outcome of the case could have a huge impact on digital asset markets, with Tether regarded as the asset that backs up much of BTC's (and other popular assets) price.
Whenever the curtain is pulled back on the operations of Tether, the representations made by its executives change dramatically.
With a large portion of the "money" flowing into digital asset markets recently coming from USDT, any regulatory action against it could have a large negative impact, Jon Southurst writes.
Reginald Fowler has been embroiled in a legal battle for months over his involvement in the Crypto Capital/Bitfinex case.
New York Attorney General Letitia James has requested a New York court to extend the deadline for documents submission by iFinex Inc., the parent company of Bitfinex and Tether.
Reginald Fowler has been accused of misleading his lawyers regarding his financial status, having paid just $25,000 since the case started in 2018.
Former player and football league investor Reginald Fowler saw his legal team submit a motion to withdrawing their representation in the case.
Blockstream perpetuates the problems faced by Bitcoin knockoffs and then offers its own solution to those problems, while attempting to destroy and censor the better solutions that already exist.