Last updated February, 2018
January 30th, 2018 – TetherUSD and Bitfinex Exchange have both received subpoenas from the the U.S. Commodity Futures Trading Commission.
Bitfinex is one of the largest bitcoin exchanges, and Tether, a company affiliated with Bitfinex, claims it is fiat-backed cryptocurrency.
There are no details as to what information the CFTC is seeking from the companies, so it may just be something routine. However, at the same time, there are lots of people online freaking out that Tether might be going bankrupt blah blah….
First of all, did you ever really believe that Tether had $1 USD for each of its coins? That means that since January 2 of this year, when Tether’s market cap was $1.375 billion, to today, with a market cap of $2.2 billion, that Tether aquired $900 million and put it into holdings? In less than a month?! I never believed that claim, and there was never enough evidence or official documentation to make me believe that Tether actually did hold the money it said.
In addition to the CFTC subpoena, the Security and Exchange Commission has also requested information from Tether.
Plus, the audit firm that was working with Tether has recently quit.
Thanks Tether – who knows what the market implications of this will be, could be another round of selling as the market is afraid Tether might be a fraud.
Uncertainty breeds dought, and doubt leads to those with weak hands to sell their positions. Even those with strong hands may want to opt to holding BTC rather than USDT.