The CoinFlip digital ATM operator has made a recent announcement that it is changing its support for Tether Stablecoin (USDT) . The charges of corruption and fraud by the Attorney General of New York on Bitfinex and the stablecoin would be the main reasons.
Are Bitfinex and Tether involved in fraud?
The firm said a support for the Stoncoin version created by Tron should add 180 cryptocurrency ATMs across America. In addition, users will be able to purchase this stablecoin from the nation’s convenience stores, gas stations, and tobacconists.
The announcement on Twitter is as follows:
“UPDATE: Registration of $ USDT will be postponed to a later date.
However, CoinFlip and TRON will always work together to bring the TRON ecosystem to our customers and make the cash-to-TRON experience as easy as possible. “
Daniel Polotsky, the founder and CEO of the startup of digital coin vending machines, gave some explanations that the TRON USDT support plan was deferred to the NYAG case that involved Tether and Bitfinex.
For their part, the authorities want to certify the 100% legal operation of the crypto-bourse and the stablecoin before any product proposal.
— CoinFlip Bitcoin ATM 2️⃣0️⃣0️⃣ (@CoinFlipATM) April 30, 2019
The Bitfinex case: a multi-million dollar fraud
According to NYAG, Bitfinex has hidden $ 850 million since the end of 2018 by covering its misdeeds with a multi-million dollar loan to Tether. Many government authorities reportedly seized the third party payment processor Crypto Capital as a result of the charges.
Bitfinex would have covered itself by receiving a transaction of 625 million dollars in Tether between November and March. Bitfinex was able to return this sum and obtained a credit of $ 900 million, but in the meantime suspicions have already been founded.
Tether would have laundered its US dollar reserves. Barely 74% of the 2.6 trillion USDT tokens in circulation are secured by fiduciary currency equivalents.
Related to these events, Tron also postponed the USDT user incentive method, a $ 20 million reward system.
What do you think of the consequences of these fraudulent steps suspected at Bitfinex? Comment in the comment section below