Bitfinex general counsel Stuart Hoegner has dismissed the notion that only 74% of the tether stablecoin in circulation is fully backed. Hoegner insists the stablecoin is fully backed by assets that include cash, cash equivalents as well as bitcoin. However, both Hoegner and the company’s CTO Paolo Ardoino, are pushing back against the narrative that Bitfinex is engaged in a conspiracy to pump the price of bitcoin.
The Loan to Bitfinex
In an interview with Peter McCormack, the Bitfinex general counsel claims the misconception that USDT is not fully backed stem from a sworn affidavit which he says has been taken out of context. The contents of the affidavit, which Hoegner submitted on April 30, 2020, as part of the “New York litigation with Attorney General”, became public knowledge when the USDT’s market capitalization was only $2.1 billion.
According to that affidavit, about 74% of tether backing was in the form of “cash and cash equivalents on hand.” On the other hand, the remaining 26%…