- The NY supreme court ordered Tether to suspend transfers to Bitfinex.
- The crypto community shared their thoughts on the latest debacle.
Judge Joel Cohen of the New York Supreme Court had earlier ordered stablecoin issuer Tether and Bitfinex to turn over the documentation about a loan and a line of credit. Cohen instructed Tether to suspend transfers to Bitfinex after a preliminary hearing held last week in New York City during an ongoing investigation by the New York Attorney General’s office (NYAG).
To get to know more details about this, read this story here.
Twitter reacts to the debacle
“Tether were ordered to freeze any further transfers to Bitfinex by a New York judge. This may well have been a factor in the market correction.”
“My understanding with the Tether news today is that;
-The language is vague and headlines poised to alarm
-The courts only want Bitfinex to stop doing shady things with the tether reserve
-They are not shutting down Bitfinex, or asking them to stop using Tether.”
“Seems clear that the court will allow NY AG to get to the bottom of what’s going on w Tether, & NY AG seems determined to do so. If everything were as Bitfinex said publicly, it wouldn’t have been so motivated not to turn over docs abt Tether. Money continues to leave Bitfinex.”
“If @bitfinex / #Tether and their parent company iFinex cease to exist, $BTC probably will never ever reach 10k again.
The sad truth is that, #cryptocurrency has so much potential, but it lacks appropriate regulations to contain bad actors and for it to gain mainstream adoption.”