It’s about bitcoin price manipulation. BitFinex and Tether are said to have manipulated the Bitcoin price. Other Bitcoin exchanges are said to have been involved, according to a New York prosecutor’s indictment published on June 3.Tether is said to have printed an unspecified billion amount to USDT and passed it on directly to the sister company Bitfinex. The piquant: In return, Tether has not deposited a corresponding value in US dollars.
“Tether created USDT with a stroke of the pen. They tried to disguise the transactions as sales, but the operators of Tether and Bitfinex are the same people. Because Bitfinex and Tether were essentially the same, Tether could simply transfer newly issued USDT to his Bitfinex account without receiving US dollars, as requested by real customers,” it says literally in the court document.
But that’s not all. In addition to Bitfinex, Bittrex and Poloniex are also believed to have known about the manipulations surrounding Tether and the Bitcoin price. The Bitcoin exchanges would have knowingly accepted uncovered USDT on their platforms, which were then exchanged for crypto assets. If the allegations are confirmed, it would be a bang. Ultimately, this would be the case with market manipulation. In other words: According to the state of the investigation, Bitfinex bought BTC and Co. with uncovered, self-printed stable coins and thus artificially increased its price.