- Crypto markets have seen a sharp decline over the past 24 hours with almost all of top 100 coins listed on CoinMarketcap in the red.
- The decline in crypto markets coincided with the recent decision by the New York Attorney General to take legal action against Bitfinex’s parent company for alleged fraud.
Bitcoin fell 4% on Thursday on news that the New York Attorney General (NYAG), Letitia James, sued the company behind the crypto exchange Bitfinex. James alleged that the exchange’s parent company, which also owns stablecoin Tether, has commingled business and customer funds to hide illegal behavior. As per his investigations, the company had been using Tether to mask an $850 million worth of missing funds that had been stolen by nefarious profiteers sometime last year.
According to the legal filing, Bitfinex used the controversial USD-backed cryptocurrency tether (USDT) – to pay out clients demanding withdrawals from the exchange.
“Our investigation has determined that the operators of the ‘Bitfinex’ trading…