Bitcoin Tumbles After Officials Allege $850 Million Fraud386

The cryptocurrency markets buckled on Thursday evening after New York’s attorney general accused the owners of a prominent exchange, Bitfinex, of using illicit transactions to mask $850 million in missing funds.

According to a 23-page legal filing, Bitfinex raided the reserves of a so-called stablecoin called Tether--a digital currency purportedly backed one-to-one by U.S. dollars--in order to pay out customers demanding withdrawals from the exchange.

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