5 posts published by Bennett Tomlin during January 2021. Each time a lawsuit or regulatory investigation peels back another layer of the Tether story, our understanding of exactly what Tether is and how it is run changes dramatically, while Tether seems comfortable to roll with the punches, revising the claims it makes for itself each time, offering whatever platitudes or falsehoods that it thinks it can get away with. We are writing the African blockchain narrative with the hope of driving adoption. Is the Tether lawsuit conclusion bullish or bearish for the crypto market? Tether has been in an ongoing lawsuit for 2 years, and we’re about to learn the way that is going to go down. Get updated on the latest events happening around you, Join our newsletter and get 40% off your next purchase, NYAG Required Tether’s Holding Company, iFinex to Submit Statutory Documents before Jan. 15 by Oreoluwa Makinwa, NYAG Required Tether’s Holding Company, iFinex to Submit Statutory Documents before Jan. 15, No, the CBN N5 for $1 Incentive will not make you rich by Marvelous Akpere, Jack’s Genesis Tweet Hits $2.5 Million, Proceeds to go to Africa-Focused Charity- GiveDirectly by Taiwo Lawal, Crypto Thought Leaders Get Suspended Off Twitter by Taiwo Lawal, Investors Stash $2 Million in StakeWise, An ETH 2.0-Based Staking Platform Before It Goes Live by Taiwo Lawal, BTC Makes Price Correction from $55.8k, a Short Dip? The suit against the company was based on the fact that it violated regulations. If the documents obtained by the NY AG show that Tether only has half of the reserves they claim, the real value of Tether would be 50 cents. This lawsuit could have extreme consequences for the entire cryptocurrency market so I thought it would be worthwhile to take a look. Currently, Tether is ranked number #3 with a market cap of 21 billion dollars. These violations in turn spelt harm for investors and provided services that were not authorized to especially customers in the United States (US). It should be noted that this paper is published on a “social sciences” platform which does not require peer review. I decided to summarize some facts about the failed crypto entrepreneur Jacob Kostecki. A document from the Western District of Washington, dated January 7, shows that the lawsuit against Tether and Bitfinex for alleged manipulation of the cryptomarket was withdrawn. Additionally, I would expect government officials from around the world but especially within the U.S. to very loudly proclaim we need additional regulations. “New York state has led the way in requiring virtual currency businesses to operate according to the law. You can read about the incident here but it seems to me that Tether is clearly being a bit dodgy. A few months after the NY AG filed suit, a paper was written titled Is Bitcoin Really Un-Tethered? This lawsuit is attacking the very legitimacy of Tether, the number #3 ranked cryptocurrency by market cap. Today, the class action lawsuit against him has entered default judgement.. In April 2019 Attorney General Letitia James filed a lawsuit against iFinex ( Bitfinex - a cryptocurrency exchange) claiming they used Tether ( a stablecoin created by Bitfinex) to cover up a loss of $850 million dollars. If iFinex did in fact access Tether funds and use them for any purpose other than printing Tether, there is no way they could honor the 1:1 conversion rate. The truth is I have no idea what a Tether collapse would look like except I would expect to see a lot of red straight across the board. The deadline on the 15th does not provide any ruling and has low tendencies for judicial outcome except if the required documents to be provided to iFinex (Tether holding company) are not met. Tether’s Unprecedented Growth. There was a rumor going around about Tether being involved in manipulation of the price of Bitcoin but that is said to have been debunked as there was no reliable proof to back the claim. Again, there is no single lawsuit before any judge confirming Tether was accused of market price manipulation. This research in turn resulted in a lawsuit found here which heavily references the paper. If 21 billion Tether try to flood into USDC in a short time period this could then cause the USDC $1.00 peg to break towards the upside. The appeal was dismissed for whatever reason, the deadline was set, and here we are. Cryptotvplus is an online media agency that focuses on telling the African narrative of cryptocurrency and blockchain technology. In this video, I discuss the Tether lawsuit and what will … At some point in time Bitfinex said they were told by Crypto Capital the $850 million given to them was seized by government officials. From the filing of the SEC suit against XRP, we see that the premise of the SEC complaint is that XRP is a security. But, yet again, there is serious cause for concern, Yet there is no person’s name attached to the letter, and the signature is a simple cubic curve. Further, the letter contained two notable caveats: it was provided “without liability, however arising, on the part of” the bank, its shareholders, directors, employees or officers; and the letter is “solely based on the information currently in our possession.”. Despite the pending lawsuit, the company continues to issue new tokens, which incited fear of a crypto market sell-off at the beginning of the month. The NY AG is investigating Tether for alleged fraud associated with the loan made by Tether to Bitfinex designed to hide a $850m shortfall in USD funds on Bitfinex. There is concern within the crypto world about this deadline, although it is probably an exaggerated fear. I feel like this one has been going on forever. Find out more about cookies and how you can refuse them. I have no reason to believe they only have half the required amount of reserves, I simply chose that number as an example. In fact, the main worry is that evidence will come to light that Tether created large amounts of USDT out of thin air. On this date, iFinex had to produce a bulk of documents requested by the office of the NYAG. There was a recent uptick in anti-tether noise out there, doomsdaying the latest bitcoin rally. Tether and Bitfinex lawsuit is still going on and January 15 holds an important date as it is the deadline given by the court to Tether to reveal its business practices and its treasury audit which the company has sighed away for a long. The NY AG is claiming iFinex handed $850 million dollars to a Panamanian shadow bank. Show all. The company has claimed that all the created USDT were backed by the United States dollars and about ¼ of USDT backed by other assets. Update letter for NYAG Tether case, ~30 more days of waiting everyone. “Our investigation has determined that the operators of the ‘Bitfinex’ trading platform, who also control the ‘tether’ virtual currency, have engaged in a cover-up to hide the apparent loss of $850 million dollars of co-mingled client and corporate funds,” said Attorney General James.