Tether Responses to New York Attorney General in Bitfixnex’s $850M Loss

By Katelyn James | May 3, 2019
Tether Responses to New York Attorney General in Bitfixnex’s $850M Loss

Stablecoin operator Tether has made a public response to the New York Attorney General’s claim that Tether has spent $850 million to cover crypto exchange Bitfinex’s loss at Crypto Capital, along with other allegations the firm considers to be false.

The state’s Attorney General, Letitia James reportedly held that Tether has been using its cash reserves as Bitfinex’s corporate slush fund, covering up losses from investors and the exchange’s inability to handle customer withdrawals.

The statement, also published by Bitfinex, said that such allegations “were written in bad faith and are riddled with false assertions.” The $850 million “loss” is actually seized and secured, and Tether has been trying to release the funds. Both exchanges allegedly regarded the regulator’s filing as inhibiting their efforts to do so.

Instead, the announcement reads, “[the office] should focus its efforts on trying to aid and support [their] recovery efforts,” while emphasizing that Bitfinex and Tether won’t stand this and any of the agent’s attempts against companies that have been actively keeping their business operations in accordance with the laws.

Last year, Tether also saw itself caught up in controversies as news broke that it didn’t have enough U.S. dollars to back its issued tokens. Eventually, the exchange, as well as Bitfinex, have to officially clarify in court regarding the allegation.

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