Bitcoin Forum

There’s been a lot of discussion and controversy surrounding Tether (USDT) a digital asset that claims to be backed by the U.S. dollar. Now according to reports, the U.S. Commodity Futures Trading Commission has subpoenaed the cryptocurrency exchange Bitfinex and the company Tether for unknown reasons.

A lot of skeptics believe that the digital currency Tether USDT is not backed by the U.S. dollar and may have pumped the entire cryptocurrency economy during 2017’s phenomenal year. Just recently news.Bitcoin.com reported on Tether severing ties with its auditor, so cryptocurrency enthusiasts are still left in the dark regarding USDT’s so-called backing. Tether has still not proven that it holds $2.3 billion USD in reserves. Now according to the financial publication Bloomberg the CFTC had sent subpoenas to both Tether and Bitfinex on December 6, “a person familiar with the matter” explains.

Read More Here >>>   https://news.bitcoin.com/u-s-regulators-send-tether-and-bitfinex-subpoenas/

People on the internet appear to be worried about Tether, but isn't Bitfinex the bigger issue here? A large exchange being subpoenaed is something huge, one that casts a shadow on a lot of exchanges and the crypto environment as a whole. Let's see where this goes, but it might turn out to be bad.

The two go hand in hand - the CEO is the same, and Bitfinex has a huge trading volume for BTC/USDT.  Tether going wrong would pretty much destroy Bitfinex.

It's also extremely difficult to underestimate how much money people are putting into Tether (a company which has never been audited and has actually backed out of an audit halfway through).  If you check Coinmarketcap, you'll find that Tether's trading volume is currently over a third of Bitcoin's volume.

I've thought for quite a while now that Bitfinex and Tether were a shady group and I wouldn't be surprised to see something disastrous happen to them over the coming few months.

Bitfinex should have lost the market trust at the moment it claimed it got hacked. It's safe to say that the majority of the people don't buy it, but there are still enough empty headed fools making use of that exchange.

It was pretty clear that this exchange would implode at some point, and it seems that we are a bit closer to that right now. I seriously don't understand how exchanges other than Bitfinex could have embraced Tether.

It has worked its way up to become a very crucial aspect of this market, which worries me quite a bit. I have always thought that if there would be something able to demolish our growth, that it would come from Bitfinex and Tether.