Tether issuer, the company behind the controversial cryptocurrency stated that it had invested a small part of its reserves in Bitcoin. According to the court filing that we have here today in our altcoin news, ‘’a small amount’’ of the reserves was invested into the largest cryptocurrency.
Per the document, the attorney for Tether’s associate company Bitfinex David Miller, says that the Tether issuer has invested a small amount of USDT reserves into bitcoin highlighting that ‘’prior to the Apil 24 order, Tether did invest in instruments beyond cash and cash equivalents, including Bitcoin.’’
Miller stated further that Tether made other investments as well such as purchasing other assets. In response to the statement of the attorney, the New York Supreme Court Judge Joel M. Cohen pointed out the investigation of USDT and tried to understand why someone would invest in such a volatile asset like bitcoin:
“Tether sounded to me like sort of the calm in the storm of cryptocurrency trading. And so if Tether is backed by bitcoin, how is that consistent? If some of your assets are in a volatile currency that Tether is supposed to somehow modulate, that seems like it’s playing into what they are saying.”
As it was previously reported in the best cryptocurrency news sites, the New York Attorney General’s Office (NYAG) noted that the crypto exchange Bitfinex lost nearly $850 million. The office also stated that Bitfinex used the funds from Tether to try and cover the previously mentioned $850 million. The lawyers for Tether confirmed the rumors that its tokens didn’t really have full reserve backing but that only 74 percent was backed by fiat dollars and some other reserves.
The New York Attorney General Letitia James also requested a disclosure for the documents regarding the deal that was allegedly made between the two companies. Following her request, the New York Supreme Court Judge Joel M. Cohen decided that both of the parties should resolve their dispute in a refined argument. He also noted that the NYAG cannot bring its full force of the court against Bitfinex and Tether since both of the companies denied any wrongdoing. The companies even criticized the authorities for the way they handled the case.
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