Bitfinex Slammed In New York For Allegely Using Tether "Stablecoin" Reserves As Slush Fund To Cover Losses

New York prosecutor Letitia James has announced an ongoing fraud investigation into Bitfinex for mingling customer and corporate funds with the purpose of concealing losses using the USD reserves of their Tether "stablecoin" (archived). Allegedly 700 million USD backing the stablecoin were used to conceal an 850 million USD loss. Bitfinex denies doing business in or having any connection to New York.

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