Tether in court: Yep, we sort of, kind of, definitely used our reserves to buy Bitcoin

It appears that contrary to its marketing promises, Tether – a cryptocurrency pegged to the US dollar – used some of its dollar reserves to buy Bitcoin. The stablecoin issuer, which shares management and ownership with cryptocurrency exchange service Bitfinex, has admitted it used its reserves to invest in Bitcoin and other “assets,” according to court transcripts obtained by The Block. The court documents further show New York Supreme Court Judge Joel M. Cohen is growing increasingly suspicious of Bitfinex’s and Tether’s dealings – especially after the companies recently admitted the stablecoin is not entirely backed by cash (which is Tether’s…

This story continues at The Next Web

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