Bitfinex and Tether are facing serious allegations. The Office of the New York Attorney General is investigating iFinex, the operator of Bitfinex and Tether Ltd., and the office alleges that executives have covered up missing funds. Now, many are debating whether this will have serious consequences for the exchange and its associated stablecoin.

The Accusations In Detail

According to the Attorney General’s office, $850 million is missing from Bitfinex’s activities, and the exchange did not disclose this loss to its investors. Furthermore, executives have allegedly attempted to cover this up by moving as much as $900 million from Tether’s reserves and putting it into Bitfinex’s own hands.

These funds originally went missing when Bitfinex transferred $850 million to Crypto Capital, a payment processor that was supposed to handle customer withdrawals. Crypto Capital seems to have been the reason that the funds disappeared, and Bitfinex operators apparently co-mingled client and corporate funds to hide the loss.

Tether,…

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Source: https://thebitcoinnews.com/bitfinex-tether-accused-of-wrongdoing-by-ny-attorney-general/