Cryptocurrencies dropped in value yesterday after the New York Attorney General’s court filings against Bitfinex and Tether were published. Currently, the entire market capitalization is roughly $170 billion and most cryptocurrencies have lost 2-10% of their value since the announcement.
Also read: Researchers Find Hundreds of Ethereum Wallets at Risk Due to Weak Key Pairs
NYAG Announcement Creates Crypto Market Uncertainties
On April 25, the New York Attorney General’s (NYAG) office published a court order that alleged the cryptocurrency exchange Bitfinex lost $850 million and used Tether to cover the loss. NYAG Letitia James said her department found discrepancies and the parent company of both Bitfinex and Tether “engaged in a cover-up to hide the apparent loss of $850 million of co-mingled client and corporate funds.” Bitfinex has responded to the allegations stating: “The New York Attorney General’s court filings were written in bad faith and are riddled with false assertions, including as to…