Tether Limited Denies Its Funds Were Used To Cover The $850 Million Bitfinex Loss

Tether Limited, the company behind the controversial cryptocurrency Tether denied the allegations that its reserves were used to cover the $850 million loss at the Bitfinex crypto exchange. Our coming altcoin news shows that the court findings are ‘’riddled with false assertions.’’

A statement from April 26 shows that the New York Attorney General’s Office found the case extremely confusing and riddled. Letitia James, the state’s prosecutor accused Tether Limited and Bitfinex crypto exchange of violating the New York law. Both of the entities took on activities that defrauded crypto investors in the US state. According to the court findings, Bitfinex managed to get millions of dollars from Tether’s reserves in order to cover the losses from investors and to hide the inability to process the clients’ withdrawals.

Tether limited released a statement saying:

 “The New York Attorney General’s court filings were written in bad faith and are riddled with false assertions, including as to a purported $850 million ‘loss’ at Crypto Capital. On the contrary, we have been informed that these Crypto Capital amounts are not lost but have been, in fact, seized and safeguarded. We are and have been actively working to exercise our rights and remedies and get those funds released.”

The statement was also released by crypto exchange Bitfinex where it says that the New York Attorney General’s office ‘’seems to be intent on undermining efforts’’ in order to obtain the funds that were released. They claim that these actions by the Attorney General’s office could scare off their customers. Tether Limited and Bitfinex insisted on full cooperation with the prosecutors and called the AG’s office to ‘’focus its efforts on trying to aid and support our recovery efforts.’’ The statement also adds:

 “Both Bitfinex and Tether are financially strong — full stop. And both Bitfinex and Tether are committed to fighting this gross overreach by the New York Attorney General’s office against companies that are good corporate citizens and strong supporters of law enforcement.”

Tether Limited was accused that its Tether stablecoin was operating with a fractional reserve and was issuing more tokens that it even had the back up for. Tether also stated in the latest cryptocurrency news that an audit company shows that the digital currency was collateralized.