In June 2018, researchers John Griffin and Amin Shams published a paper arguing that trading patterns on the blockchain suggested that the Tether stablecoin had been utilized to manipulate the price of Bitcoin during 2017’s historic cryptocurrency bull run. A new forensic study from the duo has reportedly found that the manipulation was caused by “one large player.”
A class-action lawsuit filed on Sunday accuses Bitfinex and Tether of manipulating the price of Bitcoin, and “propping and popping the largest bubble in history,” Bloomberg reports. The lawsuit alleges that the defendants’ actions have likely caused damages of more than $1.4 trillion.
Tether today announced the launch of its CNHT cryptocurrency, a stablecoin that will be pegged to the offshore Chinese yuan (CNH). The launch was confirmed in an announcement posted on the company’s website on Monday.
Tether has plans to introduce a new stablecoin that would be pegged to the value of China’s yuan currency, according to an article published by Chinese media outlet Chain News. The plans for the ‘CNHT’ stablecoin were reportedly confirmed by Bitfinex shareholder Zhao Dong, who suggested that his RenrenBit digital asset management platform will be among the first to back the new venture.
Cryptocurrency exchange Bitfinex has responded to recent allegations by the New York Attorney General’s office in a statement on the company’s website. The statement asserted that the AG court filing was written in bad faith, and disputed accusations that the company has lost $850 million.
In a statement released on Thursday, New York Attorney General Letitia James accused the operators of the Bitfinex cryptocurrency exchange of using at least $700 million of tether reserves to hide $850 million of losses. The AG’s office announced that it has obtained a court order enjoining the Bitfinex operators from further violations of the law “that may have defrauded New York investors that trade in virtual or ‘crypto’ currency.”
Earlier this year, there were reports that the U.S. Department of Justice had launched a criminal probe into the cryptocurrency industry, focusing on spoofing, wash trading, and other illegal practices. This week, Bloomberg reported that the DOJ is now examining whether Tether trading played a role in illegally manipulating prices for the world’s most well-known digital currency:
Tether Ltd, the company responsible for issuing dollar-backed USDT tokens, confirmed on Thursday via the Tether blog that it had established a $1.8 Billion banking relationship with Bahamas-based Deltec Bank & Trust Ltd.