Bitfinex reveals stablecoin is only 74% backed by cash, says it’s ‘simultaneously addressing’ requests from NYAG, DOJ and CFTC

In an affidavit released Tuesday, Stuart Hoegner, general counsel for Tether, revealed that only 74% of its stablecoins were backed by its cash reserves, claiming the company knowingly did not disclose this information to its customers.

Hoegner wrote that Tether currently has cash or cash equivalent of around $2.1 billion, representing around 74% of its current outstanding stablecoins. The remaining 26% is held by Bitfinex, the crypto exchange that was charged by the New York Attorney General's office for draining $700 million from Tether to cover its alleged $850 million loss.

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