Stablecoins are very useful in the crypto environment, a pretty good invention that changed the game. However, the most used stablecoin, the TETHER, has some troubles with justice.
Bitfinex accused of misappropriation of funds
As you may know it, USDT is backed by banks, centralized entities, contrary to DAI for example, which is created using collateral assets. Tether is the oldest stablecoin and the most used. But there is an investigation in progress around Tether and Bitfinex. Indeed, there is a suspicion of a $ 900 million fraud.
This fraud dates back to 2018 after Bitfinex lost $ 850 million funds from their clients. Then Bitfinex contracted a loan with USDT to hide that loss. The attorney general of New York summoned the lawyers of both entities. Indeed, the problem is that TETHER was supported by "real money" at only 74%. This problem is now solved according to Tether, without giving more details.
What will be the repercussions for TETHER now ?
USDT deleted ? In my opinion, no way ! Why ? There is too much money to make in this environment, this would engender a catastrophe in the crypto environment, in the financial environment, so in the whole world. That's why I think it is not even a possibility, don't worry. However, it may be possible that centralized exchange temporarily suspend some huge trades involving USDT, as Coinbase did it for XRP, which is seriously observed by the SEC.
Anyway, I think this case will finish with a huge fine for the Bitfinex team. Customers will not be affected by it and Bitfinex will be reprimanded and punished for this. I know it is quite worrying at the moment but I think all will finally finish well.
And you, how do you think this case will end ?
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