Sign up for The Paypers newsletter Follow The Paypers on LinkedIn Follow The Paypers on Twitter Follow The Paypers on Facebook
The Paypers, paypers, Insight in payments, News, Reports, Events
 advertisement
Cryptocurrencies

Bitfinex, Tether contest USD 850 mln fraud court case

Tuesday 7 May 2019 | 12:57 PM CET

Following the alleged fraud case involving Bitfinex and the Tether stablecoin, the two companies have officially contested the accusations.

In April, the New York Attorney General affirmed that Tether gave USD 850 million of its funds in order to help Bitfinex. As the companies share the same owners, they just moved the money around. According to the Attorney General, the problem rests in the fact that this constitutes fraud because Tether was supposed to be backed by USD, and it was used to fund Bitfinex.

Bitfinex is also being accused of fraud, and its funds may have been frozen by the law enforcement. As such, the holding company which owns both Tether and Bitfinex, iFinex, went to court to defend its interests, denying any kind of wrongdoing at all in this case. Moreover, the company has proceeded to vacate the court order because, according to their evaluation of the situation, the order was issued on incomplete or incorrect facts using the wrong legal standards. It also mentioned that the New York Attorney General does not even have the proper basis of authority in order to regulate this sphere, which can be considered a disruptive injunction because it froze over USD 2 billion worth of assets.

More: Link
 advertisement
 advertisement
 advertisement
 advertisement