Litigation Lags: iFinex’s Request for a Delay
In a thrilling twist in the saga of iFinex Inc, the parent company of both crypto exchange Bitfinex and stablecoin Tether (USDT), the legal counsel has thrown in another request to the New York Supreme Court. On January 19, they asked for an additional 30 days to compile documents that the Office of the Attorney General (OAG) has been eagerly awaiting.
Document Drama: The Ongoing Saga
Initially, the deadline for the document production was January 15 — an extension showcasing how this courtroom drama keeps unfolding like a never-ending series. Charles Michael, the legal counsel for the defendants, emphasized a “substantial volume” of documents had already been supplied, but alas, they still have “supplemental agreed-upon items” that are gallivanting through the legal pipeline.
Date in the Diary: The Timeline of Trouble
The root of this legal entanglement dates back to April 2019 when accusations emerged that Bitfinex had tried to hush up the supposed loss of $850 million from customer funds. Allegations swirled that they resorted to illegal loans from Tether to mend their financial mishap. Did they hope no one would notice? It’s like trying to hide a hippo behind a daisy!
Legal Misadventures
- April 2019: New York Attorney General’s investigation kicks off
- Allegations of illegal loans raised
- Document submission deadlines keep getting pushed
- $24 billion USDT issued despite questions of backing
Tether, the Heavyweight: What’s Really Backing USDT?
In case you’ve been living under a rock, Tether is the behemoth of stablecoins and supposedly 100% backed by reserves that include traditional currencies. However, investigations revealed that only about 74% of these tokens had real cash assets backing them, raising eyebrows and questions about the stability of this digital juggernaut. Yet, it hasn’t curtailed its popularity!
Influence on the Crypto Market: The Ripple Effect
With Tether playing a massive role in crypto trading, some experts suspect a disastrous outcome for iFinex could send shockwaves through market prices, particularly Bitcoin (BTC). Just imagine a pebble tossed into a serene lake, causing all sorts of ripples — that’s Tether in the world of cryptocurrency!
Tether and FUD: The CTO Speaks Out
Recently, Bitfinex’s CTO, Paulo Ardoino, took to Twitter to combat skepticism regarding Tether not being a security, attributing concerns to FUD (Fear, Uncertainty, and Doubt) spreaders. He reminds everyone that Tether is indeed registered and regulated, much like its centralized competitors. But, who really benefits from these rumors? Now, that’s a head-scratcher.
