Bitfinex Used Tether Reserves to Mask Missing $850 Million, Probe Finds

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Bitfinex Used Tether Reserves to Mask Missing $850 Million, Probe Finds
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The New York Attorney General alleges a cryptocurrency-exchange operator drained millions from digital coin Tether's reserves

A cryptocurrency exchange that claims real dollars back its popular digital coin Tether raided those reserves to cover up $850 million that went missing, the New York Attorney General’s office said Thursday.

State Attorney General Letitia James said Hong Kong-based iFinex Inc., which operates the Bitfinex cryptocurrency exchange and owns Tether Ltd., has been commingling client and corporate funds to cover up the missing funds, which occurred in mid-2018 and hadn’t been disclosed publicly.

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