Tether News Flash – Headline for October 6

  • Tether Continues to Face More Scrutiny
  • Tether Is Under Investigation by the NY State Attorney General
  • Tether Has Not Produced Any Documents to the NYAG Office Yet

Tether News Today – In a recent press release, Tether said it is expecting lawsuits based on research that they refer to as “Meritless and Mercenary.” The New York Attorney’s General office has been investigating Tether for about six months now. They have given Tether and Bitfinex a deadline of October 14 to hand over documents.

Tether Continues to Face More Scrutiny

Over the past couple of years, Tether has faced a lot of scrutinies, as it continues to print hundreds of millions of USDT tokens. In just a period of twenty-four months, the total supply of Tether (USDT) has increased by almost ten times. When the stablecoin launched, the market cap was just $450 million. Today, the market cap of the stablecoin has surged to $4.1 billion.

Tether (USDT) Price Today – USDT / USD

NamePrice
bitcoin
Bitcoin
$8,160.56-2.00%
tether
Tether
$1.0000.113%

In June last year, the University of Texas released a study that claims that the price of Bitcoin (BTC) was significantly affected by the issuance of new Tether (USDT) tokens. Recently, another research carried out by TomenAnalyst.io revealed that when USDTs are issued, the price of Bitcoin (BTC) surges as much as 70 percent of the time. Tether said that its business model is to receive money from institutional investors, print the equivalent number of tokens, and send it to their customers. Nevertheless, the firm made it clear in its terms of services that it would not reimburse Tether (USDT) for USD.

Tether Is Under Investigation by the NY State Attorney General

Last April, the New York State Attorney General started an investigation into Tether and iFinex – the parent firm of Tether. iFinex is also the owner of Bitfinex – one of the most popular digital currency trading platforms in the world. The investigation focused on mingling corporate and client funds together and cover-ups to hide lost funds.

In addition, when the investigation started in April, the lawyers of Tether said that USDT was only backed by 74 percent of their reserves. For each Tether (USDT) out there, the firm only has 74 cents to back it up.

Tether Has Not Produced Any Documents to the NYAG Office Yet

Until this moment, Tether has failed to produce any sort of document to the office of the New York Attorney General. In addition to that, after being in operation for years, the firm has still failed to produce any audit on their finances, despite making several promises that they would do that. Because of its continuous minting, Tether (USDT) has now climbed up to the fourth position on the list of top digital currencies by market cap, according to CoinMarketCap.

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.

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