Home Crypto News Tether’s Message to Extortionist Demanding 500 BTC: “We Are Not Paying”

Tether’s Message to Extortionist Demanding 500 BTC: “We Are Not Paying”

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Stablecoin issuer Tether (USDT) has allegedly obtained a ransom word demanding 500 Bitcoin (BTC). The word’s creator claims that if Tether doesn’t pay up, she or he will publish paperwork that might “harm the bitcoin ecosystem.”

Tether tweeted in regards to the alleged ransom word on Sunday: “while we believe this is a pretty sad attempt at a shakedown, we take it seriously,” the corporate wrote, including that “we are not paying.”

“We have reported the forged communications and the associated ransom demand to law enforcement. As always, we will fully support law enforcement in an investigation of this extortion scheme.”

Stuart Hoegner, General Counsel at Bitfinex, instructed Finance Magnates that “we have forwarded the threats to law enforcement agencies. We are not in a position to provide you with a copy of the communication at this time.”

Tether Dollars Play a Crucial Systemic Role within the Crypto Ecosystem

CoinDesk reported that Tether’s market cap has seen a veritable explosion all through the previous yr. At the start of 2020, there was roughly $8 billion in Tether Dollars (USDT) in circulation. Today, that determine is over $35 billion, and because the cryptocurrency ecosystem continues to develop, extra USDT is being printed at pretty common intervals.

Tether Dollar is a cryptocurrency that’s ‘pegged’ to the USD. According to Tether, every Tether Dollar in circulation is backed by a USD in Tether’s reserves.

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Indeed, the Tether Dollar has come to play a key position in crypto’s financial ecosystem. Instead of cashing out into fiat, merchants switch their holdings into USDT; brokers and exchanges additionally use USDT on a excessive degree. CoinDesk defined that, subsequently, Tether Dollars have developed a kind of ‘systemic importance’ for crypto.

Unverified Documents Raise Questions

However, Tether has been the topic of some controversy over time. Academics, cryptocurrency skeptics and the New York Attorney General (NYAG) have all voiced doubts about Tether’s solvency.

Most not too long ago, unverified paperwork showcasing an alleged electronic mail thread between a Tether worker and representatives of Bahamanian financial institution stated to maintain USDT reserves, have surfaced on the web. The paperwork have as soon as once more raised questions on Tether’s solvency. Tether denied their legitimacy in the identical Twitter thread exposing the 500 BTC extortion try.

“Forged documents are circulating online purporting to be between @tether_to personnel and reps of Deltec Bank & Trust and others,” the corporate stated, including that “the documents are bogus.”

Throughout the years, the corporate has vehemently denied any and all doubts about their operations. Tether settled a multi-year court docket case in opposition to the NYAG on Tuesday relating to an $850 million mortgage that the corporate made to Bitfinex, its ‘sister’ cryptocurrency trade. Neither Tether nor Bitfinex admitted to wrongdoing within the settlement.

Still, NY Attorney General, Leticia James stated that” “Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie.” According to the settlement reached within the settlement, Tether will present quarterly studies on its reserves for the subsequent two years.



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