what is Tether / Bitfinex case ?
it is too complicated case.
have a legal case against Tether / Bitfinex and Bitfinex's sister company Ifinex and Crypto Capital ( and Crypto Capital's owner Global Trading LLC and Reggie Fowler, owner of Global Trading LLC ) in Southern district New York of U.S court.
When the lawsuit opened, there were 4 billion supplies, and there were approx. 800 million deficit/missing. The case opened up to this.
In 2020, they minted an additional approximately 3 billion USDT.
The defense of the tether / bitfinex cartel; The assets are not actually lost, they gave them to the crypto capital company through the Bitfinex's subsidiary Ifinex. They said that they made these transfers through the American banks in Arizona, Georgia, and Colorado, and they requested that these banks be subpoena to witness that they were transferred from tether / bitfinex to ifinex and then to crypto capital last month.
Crypto capital's $ 218 million in Portuguese banks and $ 335 million in Polish banks were seized from the "laundering money for Colombian drug cartel".
The source of this confiscated money is not clear whether tether / bitfinex or any other source (Colombian drug cartel).
Even if all of these coins are owned by tether / bitfinex, I couldn't find any explanation for the rest of the 800 million. I have read that Crypto capital's cases in Europe are not just tether / bitfinex, which is the incoming and outgoing money in different countries.
Crypto Capital is owned by a company called Global Trading Solution and the Global Trading's owner is Reggie Fowler. This fowler is included in the case with the charge of bank fraud, unlicensed money remittance business, etc. from tether related transactions.
The prosecution wants to convince fowler to deal with the court and have the tether / bitfinex sentenced. Fowler & Tether related case link to those who want to read the tether related indictment;
https://iapps.courts.state.ny.us/nyscef/ViewDocument?docIndex=PGPA0A4fPa9gWHml/J5wEQ==
In the draft, which the prosecution did not convert to the accusation, the financial records were not properly kept for tether / bitfinex in contradiction with the sarbanes-oxley law and the equal assets/equities that were not backed up %100 during the minting of the USDT as a contrary to the blue sky laws and the securities act dated 1933 and 1934 but were subsequently replaced by fowler. If not, maybe the prosecutor's office may issue additional indictments.
Tether's lawyers were sent an affidavit to the court on April 30, 2020, saying that there is no one-to-one correspondence, but 74% is worth the dollar and other commercial assets. In a way, they formally accept that Tether is not exactly back up %100.
https://www.coindesk.com/tether-lawyer-confirms-stablecoin-74-percent-backed-by-cash-and-equivalents
The link to those who want to read subpoena and other topics:
https://www.coindesk.com/bitfinex-tether-seek-subpoenas-across-us-in-hunt-for-missing-800m
Scheduled trial for Tether/Bitfinex was on April 28 but all court operations suspended in Southern District New York on March 30 because of Covid19. New trial date will be set after covid.
