In January 2021, USDT supply grew from 21.07 billion to 25 billion, a 3.8 billion increase, second only to the monthly issuance in September last year. For your security, we need to re-authenticate you. This site uses cookies. The incident would be unprecedented. However, let’s focus on the NY AG lawsuit. Please. This is a technical date where no decisions, conclusions or rulings are expected. Ardoino and other Tether and Bitfinex officers are giving their best priority to public communication to reduce the fud and working every second to keep private keys of the token sale. Tether/iFinex have maintained they are innocent of any wrongdoing, and that many assertations made against Tether’s operations are false. The problem arises when people begin to question if Tether can really be redeemed at a 1:1 ratio. Despite the pending lawsuit, the company continues to issue new tokens, which incited fear of a crypto market sell-off at the beginning of the month. In this video, I discuss the Tether lawsuit and what will … Tether’s Unprecedented Growth. Tether is a stable coin which people depend on to maintain its peg at $1.00. Show all. However, this lawsuit has sparked fear in the hearts of many in the cryptocurrency industry with the worry that an evidence will support the claim against Tether about creating a significant amount of USDT without collateral. From the filing of the SEC suit against XRP, we see that the premise of the SEC complaint is that XRP is a security. If I deposit $10,000 dollars of LINK into Aave and then withdraw $1,000 dollars of Tether, and while I have my loan out the price of Tether tanks because of the lawsuit, would Aave even want the Tether back? The plaintiffs did so voluntarily and then reintroduced the lawsuit in a new jurisdiction. These cascading liquidations would cause a downward price action spiral. We are writing the African blockchain narrative with the hope of driving adoption. The XRP Price is Crashing Following the Lawsuit Filed by the SEC against Ripple. The controversial issue at hand that needs to be addressed is the collateralization of all USDT created by Tether. The new policy reads : Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, “reserves”). It would certainly leave a bad taste in retail investors mouths. I decided to summarize some facts about the failed crypto entrepreneur Jacob Kostecki. On January 15th 2021 Tether is due to produce documents for the lawsuit brought forth by New York Attorney General Letitia James. Would they double the amount of Tether requested back if the price went to 50 cents? I share data from an incredible article … USDT supply increased by 5.5 billion during September 2020 as printing began on Aug. 30, 2020, with a total supply close to $10 billion. “Every tether is always backed 1-to-1, by traditional currency held in our reserves. Tips to Stand Out at Your Law Firm Interview January 19, 2021. Published by Thien-Vu Hogan at January 18, 2021. Tether is the cryptocurrency industry’s biggest threat in 2021, says a report penned by Messari’s Founder Ryan Selkins. It should be noted that I have yet to find the reason the $850 million was given to Crypto Capital in the first place. This lawsuit is attacking the very legitimacy of Tether, the number #3 ranked cryptocurrency by market cap. The truth is I have no idea what a Tether collapse would look like except I would expect to see a lot of red straight across the board. It should be noted that this paper is published on a “social sciences” platform which does not require peer review. To add even more concern, Tether recently changed the wording for their reserve funds policy. A widely used cryptocurrency can’t escape investigation and … The post NYAG Required Tether’s Holding Company, iFinex to Submit Statutory Documents before Jan. 15 appeared first on Cryptotvplus. The bank was run by Daniel Barrs who has been indicted for failure to follow anti-money laundering laws. The September 17th hearing was for an appeal issued by iFinex claiming the case was outside the NY AG jurisdiction because Bitfinex does not operate in New York. The General counsel of iFinex; Stuart Hoegner and Tether’s Chief Technical Officer, Paolo Ardoino were on a podcast yesterday, 11th January, 2021 and Ardoino noted that Tether is fully backed and that they are working towards increased transparency this year and that business continues as usual after the 15th of January. Further, the letter contained two notable caveats: it was provided “without liability, however arising, on the part of” the bank, its shareholders, directors, employees or officers; and the letter is “solely based on the information currently in our possession.”. by Oreoluwa Makinwa, AMA Session with Owen Odia, Country Manager, Luno, Nigeria, AMA Session with Gaius Chibueze, Founder, ABiT Network, AMA Session with Dr. Gilead Okolonkwo, CEO & Chairman, BeepMagnet Intl. On January 15th 2021 Tether is due to produce documents for the lawsuit brought forth by New York Attorney General Letitia James. 01 January 2021 00:10 GMT+2 / Aziz Abdel-Qader 100 Million Tether Transferred from Bitfinex to Huobi Whale Alert reported the movement of $99.9 million worth of Tether … By Crypto In Law on January 15, 2021. iFinex then accessed Tether reserve funds to cover up this $850 million dollar loss. The original suit was filed in April 2019. New York Attorney General’s office (NYAG) has given Tether till 15th January, 2021 to submit the required documents as regards the lawsuit against the Tether holding company; iFinex. Another lawsuit that’s been drawing a lot of attention lately is the New York Attorney General’s investigation into Tether. These violations in turn spelt harm for investors and provided services that were Tether’s CTO comments on the lawsuit in a podcast The General counsel of iFinex; Stuart Hoegner and Tether’s Chief Technical Officer, Paolo Ardoino were on a podcast yesterday, 11th January, 2021 and Ardoino noted that Tether is fully backed and that they are working towards increased transparency this year and that business continues as usual after the 15th of January. But, yet again, there is serious cause for concern, Yet there is no person’s name attached to the letter, and the signature is a simple cubic curve. The lawsuit filed by NYAG alleges that both Bitfinex and Tether were … The appeal was dismissed for whatever reason, the deadline was set, and here we are. Jacob Silverman / January 13, 2021 Is Tether Just a Scam to Enrich Bitcoin Investors? Cryptotvplus is an online media agency that focuses on telling the African narrative of cryptocurrency and blockchain technology. Deltecbank Revelation Might Brew Trouble For Tether. I have no reason to believe they only have half the required amount of reserves, I simply chose that number as an example. In April 2019 Attorney General Letitia James filed a lawsuit against iFinex ( Bitfinex - a cryptocurrency exchange) claiming they used Tether ( a stablecoin created by Bitfinex) to cover up a loss of $850 million dollars. 0. CRYPTO NEWS – Tether Lawsuit and Banks Fight Bitcoin February 2, 2021adminBitcoin Frauds And Crimes42 January 15th is an important date that may be holding Cryptocurrency back from another price surge. A few months after the NY AG filed suit, a paper was written titled Is Bitcoin Really Un-Tethered? Categories . To Tethers credit they have previously issued a letter from their new bank, Deltec, proving their reserve balance. Currently, Tether is ranked number #3 with a market cap of 21 billion dollars. The deadline for documents to be presented was December 2020 however the NY AG requested an extension until January 15th 2021 which was granted. The suit against the company was based on the fact that it violated regulations. Tether’s Unprecedented Growth. In the world of technology, Africa is usually the last continent to adopt the latest tech, and even when we do, it is not perceived in the right light. A document from the Western District of Washington, dated January 7, shows that the lawsuit against Tether and Bitfinex for alleged manipulation of the cryptomarket was withdrawn. These violations in turn spelt harm for investors and provided services that were A new plaintiff against Tether and Bitfinex The deadline on the 15th does not provide any ruling and has low tendencies for judicial outcome except if the required documents to be provided to iFinex (Tether holding company) are not met. Get updated on the latest events happening around you, Join our newsletter and get 40% off your next purchase, NYAG Required Tether’s Holding Company, iFinex to Submit Statutory Documents before Jan. 15 by Oreoluwa Makinwa, NYAG Required Tether’s Holding Company, iFinex to Submit Statutory Documents before Jan. 15, No, the CBN N5 for $1 Incentive will not make you rich by Marvelous Akpere, Jack’s Genesis Tweet Hits $2.5 Million, Proceeds to go to Africa-Focused Charity- GiveDirectly by Taiwo Lawal, Crypto Thought Leaders Get Suspended Off Twitter by Taiwo Lawal, Investors Stash $2 Million in StakeWise, An ETH 2.0-Based Staking Platform Before It Goes Live by Taiwo Lawal, BTC Makes Price Correction from $55.8k, a Short Dip? In addition to that, he also extended an injunction that barred Tether from loaning funds to Bitfinex by 90 more days. The deadline for Tether to submit the documents requested by the New York Prosecutor’s Office expires on January 15th, 2021. Dollars at a 1:1 rate of conversion. So 1 USD₮ is always equivalent to 1 USD.”. The deadline for Tether to submit the documents requested by the New York Prosecutor’s Office expires on January 15th, 2021. [ January 13, 2021 ] Ethereum Falls 11.32% In Bearish Trade Ethereum [ January 13, 2021 ] SEC enforcer behind $1.3 billion Ripple lawsuit stepping down Ripple [ January 13, 2021 ] Litecoin Falls 11% In Rout By Investing.com Litecoin Robert Stevens Jan 19, 2021 7 min read A report published in 2019 suggested that Tether was responsible for driving up the price of Bitcoin, and many still fear that if the value of the stablecoin drops it will have a catastrophic impact on the largest cryptocurrency as well. In order to fill the gap, executives of Bitfinex and Tether engaged in a series of conflicted corporate transactions whereby Bitfinex gave itself access to up to $900 million of Tether’s cash reserves, which Tether for years repeatedly told investors fully backed the tether virtual currency “1-to-1.”. Is the Tether lawsuit conclusion bullish or bearish for the crypto market? The 15/01/2021 deadline is the date set by the court (the court set the date as January 15 2020 but it is believed to be a typo and is actually meant as 2021) for iFinex to hand over all requested documents to the NYAG. The filings explain how Bitfinex no longer has access to over $850 million dollars of co-mingled client and corporate funds that it handed over, without any written contract or assurance, to a Panamanian entity called “Crypto Capital Corp.,” a loss Bitfinex never disclosed to investors. On this date, iFinex had to produce a bulk of documents requested by the office of the NYAG. January 11, 2021. And we will continue to stand-up for investors and seek justice on their behalf when misled or cheated by any of these companies. The injunction (which expires on Jan 15 2021) was designed to stop Tether and Bitfinex coming up with any other arrangements to address the shortfall as well as prohibiting destruction of documents and other evidence. Suddenly, Tether is including assets other than traditional currency in its reserves. — Paolo Ardoino (@paoloardoino) January 10, 2021 Tether Fear Uncertainty & Doubt (F.U.D) The $1.4 trillion lawsuit against #Tether is over 1,000% larger than XRP's tiny $1.3B SEC lawsuit. The suit against the company was based on the fact that it violated regulations. — lenne (@lenne0816) January 14, 2021 Deltecbank Revelation Might Brew Trouble For Tether Tether and Bitfinex lawsuit is still going on and January 15 holds an important date as it is the deadline given by the court to Tether to reveal its business practices and its treasury audit which the company has sighed away for a long. The NY AG is investigating Tether for alleged fraud associated with the loan made by Tether to Bitfinex designed to hide a $850m shortfall in USD funds on Bitfinex. The papers accusations have been questioned by many. See you around Valentine's day https://t.co/NgozuAMDVY — Bennett Tomlin (@BennettTomlin) January 19, 2021. I certainly hope Tether kept up they’re end of the bargain…. The company has claimed that all the created USDT were backed by the United States dollars and about ¼ of USDT backed by other assets. But over January it really heated up. These violations in turn spelt harm for investors and provided services that were not authorized to especially customers in the United States (US). To show proof of its bank balance, Tether released a letter dated November 1 that appeared to come from Deltec, confirming “the portfolio cash value of your account with our bank was US$1,831,322,828” as of October 31. Which brings me to why this lawsuit is so important. At some point in time Bitfinex said they were told by Crypto Capital the $850 million given to them was seized by government officials. Update letter for NYAG Tether case, ~30 more days of waiting everyone. This article “The Bit Short: Inside Crypto’s Doomsday Machine“ (very long, and reasonably well researched) from January outlines a strong argument as to why Tether could be a scam. Again, there is no single lawsuit before any judge confirming Tether was accused of market price manipulation. The post NYAG Required Tether’s Holding Company, iFinex to Submit Statutory Documents before Jan. 15 appeared first on Cryptotvplus. Perhaps there judgement that Tether being printed after a Bitcoin dump is the result of investors “buying the dip” rather than manipulation. There is concern within the crypto world about this deadline, although it is probably an exaggerated fear. “Our investigation has determined that the operators of the ‘Bitfinex’ trading platform, who also control the ‘tether’ virtual currency, have engaged in a cover-up to hide the apparent loss of $850 million dollars of co-mingled client and corporate funds,” said Attorney General James. They produced a “report” which was done by a law firm rather than an accounting firm. This site uses cookies. New York Attorney General’s office (NYAG) has given Tether till 15th January, 2021 to submit the required documents as regards the lawsuit against the Tether holding company; iFinex. Find out more about cookies and how you can refuse them. New York Attorney General’s office (NYAG) has given Tether till 15th January, 2021 to submit the required documents as regards the lawsuit against the Tether holding company; iFinex. Tether and Bitfinex lawsuit is still going on and January 15 holds an important date as it is the deadline given by the court to Tether to reveal its business practices and its treasury audit which the company has sighed away for a long. The make things even more confusing a lot of people borrow Tether when they deposit funds as collateral. Furthermore, Tether has never produced an official audit of their reserves. This lawsuit is attacking the very legitimacy of Tether, the number #3 ranked cryptocurrency by market cap. January 13, 2021 January 15th is an important date that may be holding Cryptocurrency back from another price surge. This would mean anyone holding Tether ( at 21 billion mcap there are ALOT of people holding Tether) the value of their coins would immediately be cut in half. You can read about the incident here but it seems to me that Tether is clearly being a bit dodgy. I will say however that the bank, Crypto Capital, that iFinex is dealing with seems to be shoddy at best. In January 2021, USDT supply grew from 21.07 billion to 25 billion, a 3.8 billion increase second only to the monthly issuance in September last year. Additionally, if someone is holding Tether there is a good chance they would try to sell it for another stable coin like USDC. This lawsuit could have extreme consequences for the entire cryptocurrency market so I thought it would be worthwhile to take a look. Tether’s CTO comments on the lawsuit in a podcast. Update letter for NYAG Tether case… It is important to understand what is at stake with Tether. The extension was requested because , “Ifinex has cooperated in producing the requested documents since the Sep. 17 hearing, predicting that the process will be finalized in the coming weeks.”. The suit against the company was based on the fact that it violated regulations. Today, the class action lawsuit against him has entered default judgement.. The NYAG’s case began in April 2019 after allegations Bitfinex had lost US$850 million, and was attempting to cover the loss with USDT. If they own Bitcoin and want to sell some because they think the price of Bitcoin may drop, Tether can be used to “lock in” your funds and escape the volatility of Bitcoin or other cryptocurrencies. — Paolo Ardoino (@paoloardoino) January 10, 2021 After tremendous criticism and lack of clarity, the token is currently the third-largest crypto token by market cap. Furthermore, this lawsuit has spun off a few more lawsuits. I can’t really speculate on the outcome if the case because it would be foolish for me to do so. Most likely not but who really knows? 20/01/2021. There was a recent uptick in anti-tether noise out there, doomsdaying the latest bitcoin rally. If the documents obtained by the NY AG show that Tether only has half of the reserves they claim, the real value of Tether would be 50 cents. Each time a lawsuit or regulatory investigation peels back another layer of the Tether story, our understanding of exactly what Tether is and how it is run changes dramatically, while Tether seems comfortable to roll with the punches, revising the claims it makes for itself each time, offering whatever platitudes or falsehoods that it thinks it can get away with. — lenne (@lenne0816) January 14, 2021. If iFinex did in fact access Tether funds and use them for any purpose other than printing Tether, there is no way they could honor the 1:1 conversion rate. However, on December 9th, 2020, Letitia James, the Attorney General, filed a document, asking Justice Cohen to extend the deadline to January 15th, 2021. Some prominent players have dismissed such claims, though. As reported by CryptoPotato earlier, January 15th was a much-anticipated date regarding the case between the New York Attorney General’s office and iFinex – the parent company of both Tether and Bitfinex. In fact, the main worry is that evidence will come to light that Tether created large amounts of USDT out of thin air. If 21 billion Tether try to flood into USDC in a short time period this could then cause the USDC $1.00 peg to break towards the upside. That token no longer has any volume or value to speak of.. In this video, I discuss the Tether lawsuit and what will come of this. James said that “the parties continue to cooperate on the production of documents in response to the 354 Order, and … I feel like this one has been going on forever. The NY AG is claiming iFinex handed $850 million dollars to a Panamanian shadow bank. This paper claims the Tether was printed to manipulate the cryptocurrency markets by pumping the price of Bitcoin. This would again wreak havoc on depositors as their loan value goes up and their collateral value drops likely causing cascading liquidations. In fact, the main worry is that evidence will come to light that Tether created large amounts of USDT out of thin air. This research in turn resulted in a lawsuit found here which heavily references the paper. At one point I tried to learn about a token called Kimchi. Their explanation is that an audit simply is not possible and they chose “ the next best thing”. There was a rumor going around about Tether being involved in manipulation of the price of Bitcoin but that is said to have been debunked as there was no reliable proof to back the claim. iFinex has told investors that their Tether will always be redeemable for U.S. — Jacob Oracle (@JacobOracle) January 17, 2021. Representatives for Bitfinex and Tether told the AG’s office that a Bitfinex official was told the reason the $851 million couldn’t be access was because Portuguese, Polish and American government officials had “seized” the funds. “New York state has led the way in requiring virtual currency businesses to operate according to the law. The holding company as expected did not address the issue of market manipulation. 5 posts published by Bennett Tomlin during January 2021. Tether has been in an ongoing lawsuit for 2 years, and we’re about to learn the way that is going to go down. There is concern within the crypto world about this deadline, although it is probably an exaggerated fear. iFinex Inc, the parent company of both Tether and Bitfinex has filed for a 30-day extension for the submission of key documents about Tether reserves and other financial operations in the ongoing lawsuit filed by NYAG. Lawsuit against stablecoin company Tether dropped By Editorial Office CVJ.CH on February 24, 2021 News By market capitalization, the cryptocurrency “USDT” is … Additionally, I would expect government officials from around the world but especially within the U.S. to very loudly proclaim we need additional regulations. Group, Inside Blockchain Show – 21st September, 2020, AMA Session with Nnamdi Uba, Co-founder, House Africa. To find out more, read our, This site requires JavaScript to run correctly. I say collateral value may drop because if Tether were to collapse you can bet on a market wide pullback. This would cause a major panic and a flood of people out of Tether (likely dropping the price and breaking the 1 dollar peg) and into other cryptocurrencies and/or other stablecoins. The 134-page thesis ventured into the stablecoin’s emergence as a proxy for the US dollar that helps crypto traders getting in and out of their positions quickly on exchanges. Click the link we sent to , or click here to log in. Our aim is to prove to the world that Africa is making headway in the blockchain technology and cryptocurrency space.
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