The General Attorney of New York’s charge of the $ 850 million “missing” in the Bitfinex cases continues to stir up the cryptosphere. Tether’s lawyers have responded to the prosecutor’s charge, and they claim that the USDT would have 74% reserve in return.
TETHER’S LAWYERS CONFIDENT
In a 30-page response sent to the New York Supreme Court, Tether’s lawyers explain why the General Attorney’s charges should be immediately suspended, then withdrawn or amended.
Led by Stuart Hoegner (also Bitfinex lawyer), the defense proceeds with its argument by first conceding that there is “only” 2.1 billion dollars in cash and short-term securities to cover the 2.8 billions of stablecoins USDT circulating at the moment.
The guarantee of 1 dollar for 1 USDT is only covered at 74%, but that would not call into question the value of the stablecoin, according to his lawyers.
Tether loans to Bitfinex: not to destabilize the market
For the accusations about the loan arrangements at Bitfinex, Stuart Hoegner replies that they were aimed at “protecting the digital currency market”.
The lawyer also adds that the disruption of Bitfinex’s activities could have hurt Tether:
“Tether, and Tether holders have every interest in ensuring that one of the USDT’s main trading platforms has sufficient liquidity for its current operations.”
This counter-attack of Tether seems in any case satisfactory for the market. Currently, the USDT is close to parity with the dollar, at $ 0.99 at the time of writing.