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DOJ reportedly considers filing criminal charges against Tether and Bitfinex execs

Greater than three years after preliminary reports of a federal investigation into the cryptocurrency stablecoin Tether, Bloomberg is reporting that it stays a “potential” criminal case. In response to the report, the value of Bitcoin surged, briefly rising over $40,000 for the primary time since mid-June.

Not like Bitcoin or different cryptocurrencies, a stablecoin ties its worth to a different asset — which, on this case, is one US greenback — backed by precise cash or different holdings. It’s helpful for merchants to immediately make strikes with out worrying about fast swings available in the market. Nonetheless, as many have documented, going again to 2014 when Tether was launched, there are components of its historical past that don’t add as much as the story it’s telling.

It’s that early historical past that the report claims prosecutors are centered on — particularly if Tether executives dedicated financial institution fraud and hid the character of its cryptocurrency transactions from banks. In February, Tether and its proprietor Bitfinex reached a settlement with the New York Attorney General that included paying $18.5 million in penalties with out admitting or denying accusations from the AG that the businesses “made false statements concerning the backing of the ‘tether’ stablecoin, and concerning the motion of lots of of thousands and thousands of {dollars} between the 2 corporations to cowl up the reality about huge losses by Bitfinex.”

In a statement, Tether known as the story a “repackaging of stale claims” based mostly on unnamed sources and previous allegations. The corporate says, “Tether routinely has open dialogue with legislation enforcement businesses, together with the U.S. Division of Justice, as a part of our dedication to cooperation, transparency, and accountability…It’s enterprise as standard at Tether, and we stay centered on finest serve the wants of our clients.”

PopCash.net
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