Confirmed: Tether’s USDT Are Not 100% Fiat-Backed, Bitcoin Rallies Anyway2

What a crazy week it has been for iFinex and the companies it holds, Bitfinex and Tether Limited. Last week, for those who missed the memo, New York Attorney General’s (NYAG) office revealed that the issuer of USDT and the Bitcoin exchange may be in precarious financial standing.

In an extensive report, the office revealed that Bitfinex is currently owed hundreds of millions from Crypto Capital, a Panama-based payments processor, and has opted to open a $700 million line of credit with Tether’s cash reserves to satisfy its needs. This, along with a recent filing from iFinex itself, confirmed long-held beliefs that USDT, the most popular stablecoin in the cryptocurrency market, was not fully backed by fiat.

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