On July 8 the office of the New York Attorney General submitted a report detailing Bitfinex and Tether’s alleged illegal trading and securities issuance in the state of New York.

Have Tether and Bitfinex Colluded to Manipulate Bitcoin Price?

A recently filed Memorandum of Law filed by the New York Attorney General’s Office (NYAG) alleges that Bitfinex and Tether knowingly issued USDT as loans to investors and operated as an unregistered securities operator in New York even though they are banned from conducting business in the state. 

Since April, the NYAG has vigorously investigated Bitifnex and its partner company Tether, and the most recent filing includes 28 exhibits which were sent to the New York Supreme Court. According to the NYAG, Bitfinex and Tether issued unsecured ‘loans’ to particular investors and they challenged the claim that each Tether stablecoin is backed “one to one” by U.S. dollars in a reserve account. 

New York Attorney General Accuses Tether USDT

The NYAG also alleged that Bitfinex used Tether’s reserves as a “slush fund” to…

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Source: https://thebitcoinnews.com/tether-is-in-the-soup-again-for-blatant-usdt-issuance/