The New York State General Attorney’s office is investigating exchange Bitfinex for fraud. The allegation being that the exchange used its stablecoin, Tether, to mask an $850million loss. Bitfinex and Tether (USDT) have long been a point of interest and contention as regulators and skeptics claim that the exchange can ‘print’ as many USDT as they wish thus essentially running a fractional reserve system against the bitcoins on deposit. Understanding Tether was the topic of CoinCorner November 2018 issue.
