Tether Responds to NY Attorney General Accusation, Users Still Wary of USDT

It has been a whirlwind week for crypto investors and the broader crypto market, with Tether and Bitfinex at the center of a growing scandal.

While Tether has been the focal point of a number of accusations, including frequent inquiries into the exact dollar-backing of its USDT stablecoin, the company was hit with a court filing by the New York Attorney General’s office on April 26, claiming that Tether was diverting funds to cover up for losses incurred by the cryptocurrency exchange Bitfinex. According to the details of the report, the New York AG is accusing Bitfinex–which shares a close relationship and overlap in leadership with stablecoin company Tether–of covering $850 million in losses with funds that are supposed to be backing the USDT coin.

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