- The filing encompasses 28 exhibits responding to the efforts by Bitfinex to have the case dismissed.
- The filing could confirm allegations that USDT had been issued to investors as unbacked “loans”.
According to a new Memorandum of Law filing by the New York Attorney General’s office, both Bitfinex and Tether gave loans in USDT to investors in the last one year. In addition, the two companies have been found to have operated in the state of New York although they had been banned from doing so.
The filing encompasses 28 exhibits that are coming to respond to the efforts by Bitfinex to have the case dismissed as well as resists the agency’s orders. The filing could confirm allegations that USDT had been issued to investors as unbacked “loans”. However, Tether and Bitfinex claimed that the stablecoin is backed “one to one” by reserves in U.S. dollars. Recently the officials said that the stablecoin has a 74% backing by the USD.
According to Decrypt, a crypto news outlet:
“The NYAG’s response, which spells out in great detail the exchange’s business dealings with New York investors and banking services, also throws doubt on Bitfinex’s argument that the agency has no jurisdiction over the exchange because it is not based in the United States.”