In the afternoon of April 25, US local time, New York State Attorney General Letitia James (Zhan Lexia) brought Tether and its parent company iFinex Inc. and Bitfinex to court. [See the New York State Attorney General's Office website https://ag.ny.gov/press-release/attorney-general-james-announces-court-order-against-crypto-currency-company-under, visit time: 2019 May 1. ] After the release of this news, the stable currency USDT issued by Tether showed a downward trend. After this news broke, USDT responded with a downward trend. According to AIcoin's data for the day, it fell from the 1.004USD to the lowest point of 0.966USD, with a 24-hour drop of 3.58%.
Soon, considering that USDT accounts for up to 80% of all stable currencies, some people on the Internet suggest that this is an American conspiracy theory, intended to suppress the release of USDB to issue a bloody road for Wall Street interest groups to issue regulated stable coins.
I made this accusation in the previous article " Biological and Legal Risks of Bitfinex and Tether ", fully demonstrating that the New York State Attorney General has mastered some relevant evidence, and it is inferred that Tether may never be able to find it. The full dollar reserve of stable currency equivalents issued, the New York State Attorney General's Office is less likely to fall into a boring conspiracy theories.
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- Bitfinex said NYAG's investigation was too demanding, and the latter insisted that it submit relevant documents.
- The shadow bank hidden behind the currency, Bitfinex and Bitmex
Sure enough, on May 1, 2019, CODDESK, the well-known blockchain media in the United States, was the first to report that Tether's legal counsel admitted that only 74% of USTD stable currency was supported by cash and short-term securities. [See https://www.coindesk.com/tether-lawyer-confirms-stablecoin-74-percent-backed-by-cash-and-equivalents, visit time: May 1, 2019. If combined with Tether’s previous statement that “the stable currency can be exchanged for one dollar to one dollar”, the company’s executives are likely to be suspected of serious criminal offences for fraud.
Before we proceed to further analyze the criminal legal risks of Tether and Bitfinex, this article first introduces the three major New York State Attorneys Generals who have done great things in the past four years in order to serve the industry in the virtual currency. There are better and more accurate judgments about what the field does, power, allegations and influence.
The current New York State Attorney General Letitia James (Zhan Lexia)'s predecessor is Barbara Underwood (Barbara Underwood), Barbara Underwood (Barbara Underwood)'s predecessor is Eric Schneiderman.
First, the former New York State Attorney General Eric Schneiderman ordered the then Republican presidential candidate Donald Trump's foundation to stop raising funds in New York in 2016. It was he who initiated an investigation into the credibility of the cryptocurrency market in all exchanges in the state in April 2018. However, on May 7, 2018, Rick Schneidermann announced his resignation for being sexually assaulted by four women.
Second, the investigation of the integrity of the cryptocurrency market was not stopped due to changes in the Attorney General. At Barbara Underwood, she published the "Virtual Market Integrity Survey Report" in September 2018 in the name of the New York State Attorney General, stating that many virtual currency exchanges lack basic security. Measures that make investors and their vulnerability to market manipulators. [ See the original article https://ag.ny.gov/sites/default/files/vmii_report.pdf?mod=article_inline, visit time: September 30, 2018. ]
At the same time, she announced the appointment of Cynthia Hanawalt as Director of the New Investor Protection Authority, overseeing financial regulation and prosecution of various crimes, with the responsibility of protecting traders from Ponzi schemes and potential cryptocurrency fraud. In September 2018, Barbara Underwood listed Kraken, based in San Francisco, as a potentially illegal exchange.
At the same time, Barbara Underwood sues Trump, Little Trump, Eric Trump, Ivanka Trump and Trang for misusing the Foundation and violating charity law. Foundation. In November 2018, the Foundation was forced to announce the dissolution under the supervision of the court.
Finally, in January 2019, the former New York City public welfare defender Letitia James (Zhan Lexia) officially became the New York State Attorney General, at the beginning of her work, she said in an interview with the media, "We will use legal tools for Trump and his A comprehensive investigation of commercial transactions and business transactions of their families, and then immediately investigated the business relationship of the president's family, which was criticized by the president and continued to investigate. Letitia James accused Bitfinex and Tether of all kinds of illegal acts. In fact, it is still the result of the agency's “virtual market integrity survey” for nearly a year. It is not a whim!
The work experience of the above three Attorney Generals shows that they have great powers, dare to sin for the presidential family for many years, consistently and consistently, and dare to accuse companies suspected of defrauding citizens of the state. Knowing their experiences, we can be clear: unlike the previous resurrections, Tether and Bitfinex, which are known as “Flying Birds” on the Internet, are difficult to pass legal risks. thing! How virtual currency investors can safely pass the risk brought by USDT is another major event that should be of concern.