<s>
Tether	B-Application
(	O
often	O
referred	O
to	O
by	O
its	O
currency	O
codes	O
,	O
USD₮	O
and	O
USDT	O
,	O
among	O
others	O
)	O
is	O
an	O
asset-backed	O
cryptocurrency	O
stablecoin	B-Protocol
.	O
</s>
<s>
It	O
was	O
launched	O
by	O
the	O
company	O
Tether	B-Application
Limited	I-Application
Inc	O
.	O
in	O
2014	O
.	O
</s>
<s>
Tether	B-Application
Limited	I-Application
is	O
owned	O
by	O
the	O
Hong	O
Kong-based	O
company	O
iFinex	B-Protocol
Inc.	O
,	O
which	O
also	O
owns	O
the	O
Bitfinex	B-Protocol
cryptocurrency	O
exchange	O
.	O
</s>
<s>
As	O
of	O
July	O
2022	O
,	O
Tether	B-Application
Limited	I-Application
has	O
minted	O
the	O
USDT	O
stablecoin	B-Protocol
on	O
ten	O
protocols	O
and	O
blockchains	B-Application
.	O
</s>
<s>
Tether	B-Application
is	O
described	O
as	O
a	O
stablecoin	B-Protocol
because	O
it	O
was	O
originally	O
designed	O
to	O
be	O
valued	O
at	O
USD	O
$1.00	O
.	O
</s>
<s>
Tether	B-Application
Limited	I-Application
has	O
stated	O
that	O
it	O
maintains	O
USD	O
$1	O
of	O
asset	O
reserves	O
for	O
each	O
USD₮	O
1	O
issued	O
,	O
but	O
has	O
been	O
fined	O
by	O
regulators	O
for	O
failing	O
to	O
do	O
this	O
and	O
has	O
failed	O
to	O
present	O
audits	O
showing	O
sufficient	O
asset	O
reserves	O
.	O
</s>
<s>
In	O
2012	O
,	O
J.R.	O
Willett	O
published	O
a	O
whitepaper	O
which	O
described	O
the	O
possibility	O
of	O
building	O
new	O
cryptocurrencies	O
on	O
top	O
of	O
the	O
Bitcoin	B-Protocol
blockchain	B-Application
.	O
</s>
<s>
The	O
Mastercoin	O
protocol	O
became	O
the	O
technological	O
foundation	O
of	O
the	O
Tether	B-Application
cryptocurrency	O
,	O
and	O
one	O
of	O
the	O
original	O
members	O
of	O
Mastercoin	O
Foundation	O
.	O
</s>
<s>
Brock	O
Pierce	O
,	O
became	O
a	O
co-founder	O
of	O
Tether	B-Application
.	O
</s>
<s>
and	O
Tether	B-Application
founder	O
,	O
Craig	O
Sellars	O
,	O
became	O
the	O
CTO	O
of	O
the	O
Mastercoin	O
Foundation	O
.	O
</s>
<s>
The	O
precursor	O
to	O
Tether	B-Application
,	O
originally	O
named	O
"	O
Realcoin	O
"	O
,	O
was	O
announced	O
in	O
July	O
2014	O
by	O
co-founders	O
Brock	O
Pierce	O
,	O
Reeve	O
Collins	O
,	O
and	O
Craig	O
Sellars	O
as	O
a	O
Santa	O
Monica	O
based	O
startup	O
.	O
</s>
<s>
The	O
first	O
tokens	O
were	O
issued	O
on	O
6	O
October	O
2014	O
,	O
on	O
the	O
Bitcoin	B-Protocol
blockchain	B-Application
.	O
</s>
<s>
On	O
20	O
November	O
2014	O
,	O
Tether	B-Application
CEO	O
Reeve	O
Collins	O
announced	O
the	O
project	O
was	O
being	O
renamed	O
to	O
"	O
Tether	B-Application
"	O
.	O
</s>
<s>
The	O
company	O
also	O
announced	O
it	O
was	O
entering	O
private	O
beta	O
,	O
which	O
supported	O
a	O
"	O
Tether+	O
token	O
"	O
for	O
three	O
currencies	O
:	O
USTether	O
(	O
US+	O
)	O
for	O
United	O
States	O
dollars	O
,	O
EuroTether	O
(	O
EU+	O
)	O
for	O
euros	O
and	O
YenTether	O
(	O
JP+	O
)	O
for	O
Japanese	O
yen	O
.	O
</s>
<s>
Tether	B-Application
said	O
"	O
Every	O
Tether+	O
token	O
is	O
backed	O
100%	O
by	O
its	O
original	O
currency	O
,	O
and	O
can	O
be	O
redeemed	O
at	O
any	O
time	O
with	O
no	O
exposure	O
to	O
exchange	O
risk.	O
"	O
</s>
<s>
In	O
January	O
2015	O
,	O
the	O
cryptocurrency	O
exchange	O
Bitfinex	B-Protocol
enabled	O
trading	O
of	O
Tether	B-Application
on	O
their	O
platform	O
.	O
</s>
<s>
While	O
representatives	O
from	O
Tether	B-Application
and	O
Bitfinex	B-Protocol
say	O
that	O
the	O
two	O
are	O
separate	O
,	O
the	O
Paradise	O
Papers	O
leaks	O
in	O
November	O
2017	O
named	O
Bitfinex	B-Protocol
officials	O
Philip	O
Potter	O
and	O
Giancarlo	O
Devasini	O
as	O
responsible	O
for	O
setting	O
up	O
Tether	B-Application
Holdings	O
Limited	O
in	O
the	O
British	O
Virgin	O
Islands	O
in	O
2014	O
.	O
</s>
<s>
A	O
spokesperson	O
for	O
Bitfinex	B-Protocol
and	O
Tether	B-Application
has	O
said	O
that	O
the	O
CEO	O
of	O
both	O
firms	O
is	O
Jan	O
Ludovicus	O
van	O
der	O
Velde	O
.	O
</s>
<s>
According	O
to	O
Tether	B-Application
's	O
website	O
,	O
the	O
Hong	O
Kong-based	O
Tether	B-Application
Limited	I-Application
is	O
a	O
fully	O
owned	O
subsidiary	O
of	O
Tether	B-Application
Holdings	O
Limited	O
.	O
</s>
<s>
Bitfinex	B-Protocol
is	O
one	O
of	O
the	O
largest	O
Bitcoin	B-Protocol
exchanges	O
by	O
volume	O
in	O
the	O
world	O
.	O
</s>
<s>
For	O
a	O
while	O
,	O
Tether	B-Application
was	O
processing	O
US	O
dollar	O
transactions	O
through	O
Taiwanese	O
banks	O
which	O
,	O
in	O
turn	O
,	O
sent	O
the	O
money	O
through	O
the	O
bank	O
Wells	O
Fargo	O
to	O
allow	O
the	O
funds	O
to	O
move	O
outside	O
Taiwan	O
.	O
</s>
<s>
Tether	B-Application
announced	O
that	O
on	O
18	O
April	O
2017	O
,	O
these	O
international	O
transfers	O
had	O
been	O
blocked	O
.	O
</s>
<s>
Along	O
with	O
Bitfinex	B-Protocol
,	O
Tether	B-Application
filed	O
suit	O
against	O
Wells	O
Fargo	O
in	O
the	O
U.S.	O
District	O
Court	O
for	O
the	O
Northern	O
District	O
of	O
California	O
.	O
</s>
<s>
Tether	B-Application
issues	O
tokens	O
on	O
Bitcoin	B-Protocol
(	O
Omni	O
and	O
Liquid	O
Protocol	O
)	O
,	O
Ethereum	B-Application
,	O
EOS	B-Protocol
,	O
Tron	B-Protocol
,	O
Algorand	O
,	O
SLP	O
and	O
-OMG	O
Network	O
blockchains	B-Application
.	O
</s>
<s>
Currently	O
,	O
there	O
are	O
a	O
total	O
of	O
five	O
distinct	O
Tether	B-Application
tokens	O
:	O
United	O
States	O
dollar	O
tether	B-Application
on	O
Bitcoin	B-Protocol
's	O
Omni	O
layer	O
,	O
euro	O
tether	B-Application
on	O
Bitcoin	B-Protocol
's	O
Omni	O
layer	O
,	O
United	O
States	O
dollar	O
tether	B-Application
as	O
an	O
ERC-20	O
token	O
,	O
and	O
euro	O
tether	B-Application
as	O
an	O
ERC-20	O
token	O
,	O
and	O
added	O
in	O
2020	O
United	O
States	O
dollar	O
tether	B-Application
as	O
an	O
TRC-20	O
token	O
on	O
the	O
TRON	B-Protocol
network	O
.	O
</s>
<s>
From	O
January	O
2017	O
to	O
September	O
2018	O
,	O
the	O
amount	O
of	O
tethers	B-Application
outstanding	O
grew	O
from	O
about	O
$10	O
million	O
to	O
about	O
$2.8	O
billion	O
.	O
</s>
<s>
In	O
early	O
2018	O
Tether	B-Application
accounted	O
for	O
about	O
10%	O
of	O
the	O
trading	O
volume	O
of	O
Bitcoin	B-Protocol
,	O
but	O
during	O
the	O
summer	O
of	O
2018	O
it	O
accounted	O
for	O
up	O
to	O
80%	O
of	O
Bitcoin	B-Protocol
volume	O
.	O
</s>
<s>
Research	O
suggests	O
that	O
a	O
price	O
manipulation	O
scheme	O
involving	O
tether	B-Application
accounted	O
for	O
about	O
half	O
of	O
the	O
price	O
increase	O
in	O
Bitcoin	B-Protocol
in	O
late	O
2017	O
.	O
</s>
<s>
More	O
than	O
$500	O
million	O
of	O
Tether	B-Application
was	O
issued	O
in	O
August	O
2018	O
.	O
</s>
<s>
On	O
15	O
October	O
2018	O
the	O
tether	B-Application
price	O
briefly	O
fell	O
to	O
$0.88	O
due	O
to	O
the	O
perceived	O
credit	O
risk	O
as	O
traders	O
on	O
Bitfinex	B-Protocol
exchanged	O
tether	B-Application
for	O
Bitcoin	B-Protocol
,	O
driving	O
up	O
the	O
price	O
of	O
Bitcoin	B-Protocol
.	O
</s>
<s>
The	O
Wall	O
Street	O
Journal	O
reported	O
that	O
in	O
late	O
2018	O
,	O
Tether	B-Application
Holdings	O
Ltd	O
co-owner	O
Stephen	O
Moore	O
discussed	O
efforts	O
by	O
a	O
major	O
Tether	B-Application
trader	O
in	O
China	O
to	O
“	O
circumvent	O
the	O
banking	O
system	O
by	O
providing	O
fake	O
sales	O
invoices	O
and	O
contracts	O
for	O
each	O
deposit	O
and	O
withdrawal.	O
”	O
The	O
report	O
quoted	O
a	O
Moore	O
email	O
in	O
which	O
he	O
admitted	O
signing	O
these	O
fake	O
invoices	O
and	O
contracts	O
but	O
said	O
he	O
“	O
would	O
not	O
want	O
to	O
argue	O
any	O
of	O
the	O
above	O
in	O
a	O
potential	O
fraud/money	O
laundering	O
case.	O
”	O
Tether	B-Application
released	O
a	O
response	O
calling	O
the	O
Journal	O
report	O
“	O
wholly	O
inaccurate	O
and	O
misleading	O
”	O
but	O
did	O
n't	O
cite	O
any	O
specific	O
inaccuracies	O
.	O
</s>
<s>
In	O
2019	O
,	O
Tether	B-Application
surpassed	O
Bitcoin	B-Protocol
in	O
trading	O
volume	O
with	O
the	O
highest	O
daily	O
and	O
monthly	O
trading	O
volume	O
of	O
any	O
cryptocurrency	O
on	O
the	O
market	O
.	O
</s>
<s>
Research	O
by	O
Griffin	O
and	O
Shams	O
found	O
that	O
Bitcoin	B-Protocol
prices	O
increased	O
after	O
Tether	B-Application
minted	O
new	O
USD₮	O
during	O
market	O
downturns	O
.	O
</s>
<s>
These	O
findings	O
were	O
contested	O
by	O
the	O
Bitfinex	B-Protocol
cryptocurrency	O
exchange	O
who	O
claimed	O
the	O
authors	O
cherry-picked	O
data	O
and	O
lacked	O
a	O
complete	O
dataset	O
.	O
</s>
<s>
Subsequent	O
researchers	O
found	O
little	O
to	O
no	O
evidence	O
that	O
Tether	B-Application
USD₮	O
minting	O
events	O
influenced	O
Bitcoin	B-Protocol
prices	O
,	O
supporting	O
the	O
Bitfinex	B-Protocol
critique	O
.	O
</s>
<s>
In	O
2022	O
,	O
research	O
found	O
that	O
Bitcoin	B-Protocol
prices	O
only	O
increased	O
when	O
Whale	O
Alert	O
tweeted	B-Application
to	O
the	O
public	O
that	O
Tether	B-Application
had	O
minted	O
USDT	O
,	O
supporting	O
a	O
classic	O
investor	O
response	O
to	O
news	O
announcements	O
.	O
</s>
<s>
Academic	O
research	O
following	O
the	O
Griffin	O
and	O
Shams	O
study	O
did	O
not	O
conclude	O
that	O
Tether	B-Application
manipulated	O
Bitcoin	B-Protocol
.	O
</s>
<s>
The	O
CEO	O
of	O
Tether	B-Application
and	O
Bitfinex	B-Protocol
commented	O
on	O
the	O
academic	O
debate	O
:	O
"	O
Bitfinex	B-Protocol
nor	O
Tether	B-Application
is	O
,	O
or	O
has	O
ever	O
,	O
engaged	O
in	O
any	O
sort	O
of	O
market	O
or	O
price	O
manipulation	O
.	O
</s>
<s>
Tether	B-Application
issuances	O
cannot	O
be	O
used	O
to	O
prop	O
up	O
the	O
price	O
of	O
Bitcoin	B-Protocol
or	O
any	O
other	O
coin/token	O
on	O
Bitfinex.	O
"	O
</s>
<s>
Bloomberg	O
News	O
reporters	O
found	O
irregularities	O
on	O
the	O
Kraken	O
cryptocurrency	O
exchange	O
,	O
with	O
small	O
market	O
orders	O
moving	O
the	O
market	O
price	O
of	O
Tether	B-Application
as	O
much	O
as	O
larger	O
market	O
orders	O
from	O
1	O
May	O
2018	O
to	O
22	O
June	O
2018	O
.	O
</s>
<s>
The	O
Kraken	O
cryptocurrency	O
exchange	O
offered	O
a	O
rebuttal	O
of	O
these	O
claims	O
,	O
stating	O
that	O
Bloomberg	O
News	O
misunderstood	O
the	O
concept	O
of	O
stablecoin	B-Protocol
and	O
that	O
the	O
market	O
price	O
of	O
Tether	B-Application
was	O
not	O
greatly	O
influenced	O
by	O
market	O
order	O
size	O
because	O
Tether	B-Application
was	O
a	O
stablecoin	B-Protocol
pegged	O
to	O
the	O
United	O
States	O
dollar	O
.	O
</s>
<s>
The	O
Kraken	O
cryptocurrency	O
exchange	O
rebuttal	O
of	O
the	O
Bloomberg	O
News	O
findings	O
were	O
later	O
supported	O
by	O
academic	O
research	O
concerning	O
the	O
stability	O
of	O
stablecoins	B-Protocol
.	O
</s>
<s>
On	O
20	O
November	O
2018	O
,	O
Bloomberg	O
reported	O
that	O
U.S.	O
federal	O
prosecutors	O
are	O
investigating	O
whether	O
Tether	B-Application
was	O
used	O
to	O
manipulate	O
the	O
price	O
of	O
Bitcoin	B-Protocol
.	O
</s>
<s>
According	O
to	O
Tether	B-Application
's	O
website	O
tether	B-Application
can	O
be	O
newly	O
issued	O
,	O
by	O
purchase	O
for	O
dollars	O
,	O
or	O
redeemed	O
by	O
exchanges	O
and	O
qualified	O
corporate	O
customers	O
excluding	O
U.S.-based	O
customers	O
.	O
</s>
<s>
Journalist	O
Jon	O
Evans	O
states	O
that	O
he	O
has	O
not	O
been	O
able	O
to	O
find	O
publicly	O
verifiable	O
examples	O
of	O
a	O
purchase	O
of	O
newly	O
issued	O
tether	B-Application
or	O
a	O
redemption	O
in	O
the	O
year	O
ending	O
August	O
2018	O
.	O
</s>
<s>
Tether	B-Application
claims	O
that	O
it	O
intends	O
to	O
hold	O
all	O
United	O
States	O
dollars	O
in	O
reserve	O
so	O
that	O
it	O
can	O
meet	O
customer	O
withdrawals	O
upon	O
demand	O
.	O
</s>
<s>
Tether	B-Application
purports	O
to	O
make	O
reserve	O
account	O
holdings	O
transparent	O
via	O
external	O
audit	O
;	O
however	O
,	O
Tether	B-Application
never	O
produced	O
an	O
audit	O
showing	O
it	O
had	O
the	O
purported	O
reserve	O
.	O
</s>
<s>
In	O
January	O
2018	O
Tether	B-Application
announced	O
that	O
they	O
no	O
longer	O
had	O
a	O
relationship	O
with	O
their	O
auditor	O
.	O
</s>
<s>
About	O
$31	O
million	O
of	O
USDT	O
tokens	O
were	O
stolen	O
from	O
Tether	B-Application
in	O
November	O
2017	O
.	O
</s>
<s>
Later	O
analysis	O
of	O
the	O
Bitcoin	B-Protocol
distributed	O
ledger	O
showed	O
a	O
close	O
connection	O
between	O
the	O
Tether	B-Application
hack	O
and	O
the	O
January	O
2015	O
hack	O
of	O
Bitstamp	B-Protocol
.	O
</s>
<s>
In	O
response	O
to	O
the	O
theft	O
,	O
Tether	B-Application
suspended	O
trading	O
,	O
and	O
stated	O
it	O
would	O
roll	O
out	O
new	O
software	O
to	O
implement	O
an	O
emergency	O
"	O
hard	O
fork	O
"	O
in	O
order	O
to	O
render	O
all	O
of	O
the	O
tokens	O
that	O
Tether	B-Application
identified	O
as	O
stolen	O
in	O
the	O
heist	O
untradeable	O
.	O
</s>
<s>
Tether	B-Application
has	O
stated	O
that	O
as	O
of	O
19	O
December	O
2017	O
,	O
it	O
has	O
re-enabled	O
limited	O
cryptocurrency	B-Protocol
wallet	I-Protocol
services	O
and	O
has	O
begun	O
processing	O
the	O
backlog	O
of	O
pending	O
trades	O
.	O
</s>
<s>
On	O
September	O
19	O
,	O
2022	O
,	O
due	O
to	O
an	O
ongoing	O
lawsuit	O
in	O
New	O
York	O
District	O
Court	O
,	O
Bitfinex	B-Protocol
and	O
Tether	B-Application
(	O
referred	O
to	O
in	O
court	O
records	O
as	O
B/T	O
)	O
,	O
were	O
ordered	O
to	O
produce	O
documents	O
showing	O
the	O
backing	O
of	O
USDT	O
,	O
the	O
outcome	O
of	O
which	O
is	O
still	O
pending	O
.	O
</s>
<s>
An	O
online	O
critic	O
who	O
goes	O
by	O
the	O
name	O
"	O
Bitfinex'ed	O
"	O
has	O
raised	O
questions	O
about	O
the	O
relationship	O
between	O
Bitfinex	B-Protocol
and	O
Tether	B-Application
in	O
2017	O
,	O
accusing	O
Bitfinex	B-Protocol
of	O
creating	O
"	O
magic	O
Tethers	B-Application
out	O
of	O
thin	O
air	O
"	O
.	O
</s>
<s>
In	O
September	O
2017	O
,	O
Tether	B-Application
published	O
a	O
memorandum	O
from	O
a	O
public	O
accounting	O
firm	O
that	O
Tether	B-Application
Limited	I-Application
claimed	O
showed	O
that	O
tethers	B-Application
were	O
fully	O
backed	O
by	O
US	O
dollars	O
;	O
however	O
,	O
according	O
to	O
the	O
New	O
York	O
Times	O
,	O
independent	O
attorney	O
Lewis	O
Cohen	O
stated	O
the	O
document	O
,	O
because	O
of	O
the	O
careful	O
way	O
it	O
was	O
phrased	O
,	O
does	O
not	O
prove	O
that	O
the	O
Tether	B-Application
coins	I-Application
are	O
backed	O
by	O
dollars	O
.	O
</s>
<s>
Tether	B-Application
has	O
failed	O
to	O
present	O
audits	O
showing	O
that	O
the	O
amount	O
of	O
tethers	B-Application
outstanding	O
are	O
backed	O
one-to-one	O
by	O
U.S.	O
dollars	O
on	O
deposit	O
despite	O
repeated	O
claims	O
that	O
they	O
would	O
.	O
</s>
<s>
A	O
June	O
2018	O
attempt	O
at	O
an	O
audit	O
was	O
posted	O
on	O
their	O
website	O
in	O
June	O
2018	O
which	O
showed	O
a	O
report	O
by	O
the	O
law	O
firm	O
Freeh	O
,	O
Sporkin	O
&	O
Sullivan	O
LLP	O
(	O
FSS	O
)	O
which	O
appeared	O
to	O
confirm	O
that	O
the	O
issued	O
tethers	B-Application
were	O
fully	O
backed	O
by	O
dollars	O
.	O
</s>
<s>
However	O
,	O
FSS	O
stated	O
"	O
FSS	O
is	O
not	O
an	O
accounting	O
firm	O
and	O
did	O
not	O
perform	O
the	O
above	O
review	O
and	O
confirmations	O
using	O
Generally	O
Accepted	O
Accounting	O
Principles	O
,	O
"	O
and	O
"	O
The	O
above	O
confirmation	O
of	O
bank	O
and	O
tether	B-Application
balances	O
should	O
not	O
be	O
construed	O
as	O
the	O
results	O
of	O
an	O
audit	O
and	O
were	O
not	O
conducted	O
in	O
accordance	O
with	O
Generally	O
Accepted	O
Auditing	O
Standards.	O
"	O
</s>
<s>
Stuart	O
Hoegner	O
,	O
Tether	B-Application
's	O
general	O
counsel	O
said	O
"	O
the	O
bottom	O
line	O
is	O
an	O
audit	O
cannot	O
be	O
obtained	O
.	O
</s>
<s>
On	O
April	O
25	O
,	O
2019	O
,	O
New	O
York	O
Attorney	O
General	O
Letitia	O
James	O
(	O
prosecution	O
)	O
filed	O
a	O
lawsuit	O
against	O
iFinex	B-Protocol
(	O
defendant	O
)	O
—	O
the	O
parent	O
company	O
of	O
Tether	B-Application
Limited	I-Application
and	O
the	O
Bitfinex	B-Protocol
cryptocurrency	O
exchange	O
.	O
</s>
<s>
The	O
prosecution	O
claimed	O
that	O
the	O
Bitfinex	B-Protocol
cryptocurrency	O
exchange	O
had	O
been	O
unable	O
to	O
secure	O
a	O
reliable	O
fiat	O
banking	O
relationship	O
,	O
so	O
it	O
had	O
entrusted	O
USD	O
$1	O
billion	O
to	O
the	O
Panamanian	O
payment	O
processing	O
firm	O
Crypto	O
Capital	O
Corp	O
.	O
</s>
<s>
The	O
prosecution	O
speculated	O
that	O
Crypto	O
Capital	O
Corp	O
had	O
lost	O
or	O
stolen	O
the	O
money	O
,	O
and	O
executives	O
at	O
Bitfinex	B-Protocol
and	O
Tether	B-Application
Limited	I-Application
had	O
been	O
unable	O
to	O
recover	O
up	O
to	O
USD	O
$850	O
million	O
of	O
funds	O
.	O
</s>
<s>
The	O
prosecution	O
accused	O
iFinex	B-Protocol
,	O
Bitfinex	B-Protocol
,	O
and	O
Tether	B-Application
Limited	I-Application
of	O
using	O
Tether	B-Application
Limited	I-Application
to	O
cover	O
up	O
the	O
shortfall	O
.	O
</s>
<s>
On	O
April	O
26	O
,	O
2019	O
,	O
iFinex	B-Protocol
contested	O
claims	O
that	O
funds	O
had	O
been	O
lost	O
or	O
stolen	O
by	O
Crypto	O
Capital	O
Corp	O
,	O
stating	O
that	O
funds	O
had	O
actually	O
been	O
seized	O
and	O
Bitfinex	B-Protocol
sought	O
release	O
of	O
the	O
funds	O
.	O
</s>
<s>
Crypto	O
Capital	O
Corp	O
told	O
Bitfinex	B-Protocol
the	O
seizures	O
were	O
temporary	O
and	O
presented	O
excuses	O
as	O
to	O
why	O
the	O
funds	O
could	O
not	O
be	O
released	O
to	O
Bitfinex	B-Protocol
(	O
Case	O
Point	O
33	O
)	O
.	O
</s>
<s>
Crypto	O
Capital	O
Corp	O
stated	O
that	O
:	O
in	O
May	O
2018	O
,	O
the	O
government	O
of	O
Poland	O
had	O
frozen	O
a	O
Crypto	O
Capital	O
Corp	O
bank	O
account	O
holding	O
at	O
least	O
USD	O
$340	O
million	O
of	O
Bitfinex	B-Protocol
funds	O
(	O
Case	O
Point	O
No	O
.	O
</s>
<s>
33	O
)	O
;	O
and	O
between	O
April	O
and	O
July	O
2018	O
,	O
a	O
Crypto	O
Capital	O
Corp	O
account	O
in	O
Portugal	O
containing	O
around	O
$150	O
million	O
of	O
Bitfinex	B-Protocol
funds	O
had	O
also	O
been	O
frozen	O
(	O
Case	O
Point	O
No	O
.	O
</s>
<s>
During	O
the	O
case	O
,	O
iFinex	B-Protocol
contested	O
claims	O
that	O
Tether	B-Application
Limited	I-Application
had	O
been	O
used	O
to	O
cover	O
up	O
alleged	O
losses	O
,	O
stating	O
that	O
Bitfinex	B-Protocol
had	O
borrowed	O
USD	O
$400	O
million	O
from	O
Tether	B-Application
Limited	I-Application
due	O
to	O
the	O
inability	O
to	O
access	O
seized	O
funds	O
from	O
Crypto	O
Capital	O
Corp	O
(	O
Case	O
Point	O
No	O
.	O
</s>
<s>
Bitfinex	B-Protocol
stated	O
they	O
had	O
fully	O
repaid	O
the	O
loans	O
with	O
interest	O
to	O
Tether	B-Application
Limited	I-Application
by	O
February	O
5	O
,	O
2021	O
.	O
</s>
<s>
On	O
May	O
16	O
,	O
2021	O
,	O
New	O
York	O
Supreme	O
Court	O
Judge	O
Joel	O
M	O
.	O
Cohen	O
granted	O
iFinex	B-Protocol
's	O
motion	O
to	O
modify	O
the	O
injunction	O
because	O
the	O
New	O
York	O
Attorney	O
General	O
's	O
office	O
's	O
accusations	O
were	O
too	O
general	O
and	O
lacked	O
specificity	O
,	O
stating	O
the	O
prosecution	O
's	O
case	O
was	O
"	O
couched	O
in	O
exceedingly	O
sweeping	O
terms	O
"	O
and	O
"	O
injunctions	O
must	O
be	O
specific.	O
"	O
</s>
<s>
On	O
February	O
17	O
,	O
2021	O
,	O
iFinex	B-Protocol
settled	O
the	O
legal	O
dispute	O
with	O
the	O
New	O
York	O
Attorney	O
General	O
's	O
office	O
.	O
</s>
<s>
iFinex	B-Protocol
,	O
Bitfinex	B-Protocol
,	O
and	O
Tether	B-Application
Limited	I-Application
did	O
not	O
admit	O
any	O
wrongdoing	O
and	O
paid	O
USD	O
$18.5	O
million	O
to	O
settle	O
the	O
case	O
.	O
</s>
<s>
On	O
December	O
5	O
,	O
2017	O
,	O
the	O
U.S.	O
Commodity	O
Futures	O
Trading	O
Commission	O
(	O
prosecution	O
)	O
issued	O
subpoenas	O
to	O
Bitfinex	B-Protocol
and	O
Tether	B-Application
Limited	I-Application
concerning	O
the	O
backing	O
of	O
minted	O
USD₮	O
.	O
</s>
<s>
Before	O
February	O
25	O
,	O
2019	O
,	O
Tether	B-Application
Limited	I-Application
's	O
terms	O
claimed	O
"	O
Every	O
tether	B-Application
is	O
always	O
backed	O
1-to-1	O
,	O
by	O
traditional	O
currency	O
held	O
in	O
our	O
reserves	O
.	O
</s>
<s>
After	O
February	O
25	O
,	O
2019	O
,	O
Tether	B-Application
Limited	I-Application
revised	O
their	O
terms	O
to	O
more	O
accurately	O
state	O
"	O
Tether	B-Application
Tokens	O
are	O
100%	O
backed	O
by	O
Tether	B-Application
’s	O
Reserves	O
"	O
defined	O
as	O
"	O
traditional	O
currency	O
and	O
cash	O
equivalents	O
and	O
,	O
from	O
time	O
to	O
time	O
,	O
may	O
include	O
other	O
assets	O
and	O
receivables	O
from	O
loans	O
made	O
by	O
Tether	B-Application
to	O
third	O
parties	O
,	O
which	O
may	O
include	O
affiliated	O
entities.	O
"	O
</s>
<s>
On	O
April	O
30	O
,	O
2019	O
,	O
iFinex	B-Protocol
(	O
defendant	O
)	O
—	O
the	O
parent	O
company	O
of	O
Tether	B-Application
Limited	I-Application
and	O
the	O
Bitfinex	B-Protocol
cryptocurrency	O
exchange	O
—	O
issued	O
an	O
affidavit	O
stating	O
that	O
minted	O
USD₮	O
was	O
74%	O
backed	O
by	O
a	O
narrow	O
definition	O
of	O
cash	O
and	O
cash	O
equivalents	O
,	O
with	O
the	O
remaining	O
26%	O
backed	O
by	O
other	O
assets	O
.	O
</s>
<s>
On	O
October	O
15	O
,	O
2021	O
,	O
Tether	B-Application
Limited	I-Application
paid	O
a	O
fine	O
of	O
USD	O
$41.6	O
million	O
for	O
inaccurately	O
claiming	O
that	O
minted	O
USD₮	O
were	O
100%	O
backed	O
by	O
fiat	O
USD	O
,	O
when	O
they	O
were	O
actually	O
100%	O
backed	O
by	O
a	O
combination	O
of	O
fiat	O
USD	O
and	O
other	O
assets	O
such	O
as	O
"	O
unsecured	O
receivables	O
,	O
commercial	O
papers	O
,	O
funds	O
held	O
by	O
third	O
parties	O
,	O
and	O
other	O
non-fiat	O
assets	O
"	O
.	O
</s>
<s>
Tether	B-Application
Limited	I-Application
responded	O
by	O
revising	O
their	O
claims	O
to	O
state	O
that	O
"	O
All	O
Tether	B-Application
tokens	O
are	O
pegged	O
at	O
1-to-1	O
with	O
a	O
matching	O
fiat	O
currency	O
and	O
are	O
backed	O
100%	O
by	O
Tether	B-Application
’s	O
reserves.	O
"	O
</s>
<s>
Tether	B-Application
Limited	I-Application
released	O
assurance	O
reports	O
from	O
2017	O
to	O
2022	O
attesting	O
to	O
the	O
100%	O
backing	O
of	O
minted	O
USD₮	O
.	O
</s>
<s>
In	O
May	O
2021	O
,	O
Tether	B-Application
published	O
a	O
report	O
showing	O
that	O
2.9	O
%	O
of	O
Tether	B-Application
was	O
backed	O
by	O
fiat	O
USD	O
,	O
with	O
over	O
49.6	O
%	O
backed	O
by	O
commercial	O
paper	O
,	O
and	O
the	O
remaining	O
amount	O
backed	O
by	O
other	O
assets	O
.	O
</s>
