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.
A recent announcement from the bank Tether uses (Deltec Bank) has once again called the amount of reserves Tether has into question.
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.
Nouriel Roubini is right about BTC, Tether and the criminal cartels that pump the prices of BTC while laundering out real fiat profits through their exchange partners.
Fundamentals are the theme for Dr. Craig Wright and Ryan X. Charles in the "Theory of Bitcoin: White Paper" series.
The lawyers representing Dr. Craig Wright in his lawsuit against Peter McCormack have confirmed that McCormack intends to abandon his defence of the lawsuit.