Tether admits in court to investing some of its reserves in bitcoin

Quick Take

  • In a court transcript obtained exclusively by The Block, Tether admits that it invested some of its reserves in bitcoin
  • David Miller, an attorney for Bitfinex said: “Tether actually did invest in instruments beyond cash and cash equivalents, including bitcoin.”
  • New York Supreme Court judge Joel M. Cohen questioned the logic. He said: “Tether sounded to me like sort of the calm in the storm of cryptocurrency trading. And so if Tether is backed by bitcoin, how is that consistent? If some of your assets are in a volatile currency that Tether is supposed to somehow modulate, that seems like it’s playing into what they are saying.”
Count this as the latest revelation to emerge in Bitfinex’s battle with the New York Attorney General’s office.  Tether, a stablecoin that has overlapping management and ownership with Bitfinex, admitted the company has historically used some of its reserves to make investments in bitcoin and “other assets,” according to court documents obtained by The Block. […]

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