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.
The CFTC Sends Bitfinex and Tether a Subpoena
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.
Bitfinex and Tether Say Legal Requests Are Routine While the CFTC Declines to Comment
Tether and Bitfinex did respond to a question regarding the summons in an emailed statement sent to the news outlet.
“We routinely receive legal process from law enforcement agents and regulators conducting investigations,” explained Bitfinex and Tether representatives.
It is our policy not to comment on any such requests.
Furthermore Erica Richardson, a CFTC spokeswoman declined to comment on the subject concerning the digital currency businesses. Very little public information exists on why the CFTC has sent Bitfinex and Tether the notice.
However, the news follows a lot of speculation about both of these companies from various media sources and well-documented reports. This past week Professor Nouriel Roubini otherwise known as ‘Dr. Doom’ said, “regulators are asleep at the wheel while $2 billion of fake money was created via this scam.” With Bitfinex and Tether being subpoenaed by the CFTC, it seems regulators may be very aware of Tether and exchanges like Bitfinex who are ‘tethered’ to the digital dollar business.
What do you think about Bitfinex and Tether being subpoenaed by the CFTC? Let us know in the comments below.
Images via Shutterstock, Bitfinex, the CFTC, and Tether logos.
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