Stablecoin operator Tether has responded to allegations that its funds were used to cover an $850 million loss at the crypto exchange Bitfinex — using a statement on April 26 to claim court filings by the New York Attorney General’s office are “riddled with false assertions.”
The state’s top prosecutor, Letitia James, has accused Tether, Bitfinex and associated entities of violating New York law through activities that may have defrauded crypto investors in the state. According to the court filings, the exchange took hundreds of millions of dollars from Tether’s reserves to conceal losses from investors and hide its inability to process clients’ withdrawals.
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