An Update on Bitfinex, Tether, and the Feds

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.

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