TETHER AND BITFINEX SUBPOENA TO PROVE 2.2 BILLION IN RESERVES
Tether and Bitfinex’s saga continues as U.S. regulators probe one of the world’s largest cryptocurrency exchanges. Despite Tether’s claims that each of it tokens has a US dollar backing it, the company has been less than forthcoming about its holdings. Earlier this week Tether reportedly fired external auditor, Friedman LLC.
Proof of Audit : Proof of Audit
According to an article from Bloomberg, U.S. regulatory agency, the Commodity Futures Trading Commission issued subpoenas on Dec. 6 to cryptocurrency exchange Bitfinex and Tether. The firms share the same CEO, Jan Ludovicus van der Velde.
Tether’s coins provide stability for cryptocurrency investors who substitute the tokens for dollars on exchanges. As of Tuesday, Tether had about $2.3 billion outstanding tokens. Tether’s popularity and stability come from the belief that each token has a U.S. dollar backing it in the company’s reserves. However, the company has not given conclusive evidence of its holdings to the public or have its accounts audited.
NO COMMENT FROM TETHER
Regulators regularly send subpoenas to financial institutions in order to gather information on a range of inquiries. Bitfinex and Tether issued a statement regarding the subpoena.
We routinely receive legal process from law enforcement agents and regulators conducting investigations, It is our policy not to comment on any such requests.
Despite the news, Tether (USDT) has remained stable. At the time of writing, USDT is trading at $0.98 USD, down a mere 1.33% over the last twenty-four hours.
Article here : Dowbit Article
Original article Bloomberg: Bloomberg Article