In late December of 2019, the Crypto-asset exchange Bitfinex and their affiliated stablecoin, Tether, were issued subpoenas by the New York Attorney General (NYAG). This happened in response to allegations that Bitfinex had used Tether to engage in market manipulation and prop up the price of Bitcoin during the late 2017 bull run.
Since then, the NYAG has been engaged in an ongoing investigation into the matter. As part of the investigation, the NYAG has deposed Bitfinex and Tether’s Chief Technical Officer (CTO), Paolo Ardoino. The deposition happened on January 10 and lasted for several hours.
The details of the deposition are still unclear. However, the NYAG is evidently trying to get to the bottom of the market manipulation allegations. The NYAG has also subpoenaed other members of Bitfinex’s leadership team, including its CEO and CFO.
At this point, it remains to be seen what impact the investigation will have on Bitfinex and Tether. The NYAG has already expressed concerns about how the exchange handled its customers’ funds. If the NYAG finds that the exchange was indeed engaged in market manipulation, it could have serious repercussions for both companies.
Given the sheer size and influence of Bitfinex and Tether, the outcome of the investigation could have a ripple effect on the entire cryptocurrency space. We will be watching the situation closely and will provide updates as new information becomes available.
