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Tether Documents Held in Ransom

Tether received ransom demand  “Pay 500 BTC or documents will be leaked.”

Last March 1st, Tether publicly announced that they received a ransom demand for 500 BTC (around $24 Million) along with a threat being a leak of documents aimed at harming the Bitcoin environment.

They said that they will not pay the ransom and the communications were reported to the law enforcement.

There have been a lot of rumors saying that documents and emails are already circulating, revealing sensitive data about the USDT stablecoin, but Tether has declared that the documents were forged.

The Tether Marketcap has also seen growth from 4 billion to 34 billion in the last few months making the concerns amongst the crypto community with regards to the 1-to-1 backing against the US Dollar.

A New York Court Case with Bitfinex

The ransom demand to Tether came right after the news that they agreed to pay a concurred $18.5 million settlement for a recent New York court case.

“Bitfinex and Tether recklessly and unlawfully covered up massive financial losses to keep their scheme going and protect their bottom lines. Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie.”

New York Attorney General Letitia James

And the settlement statement declared: “As of Nov. 2, 2018, tethers were again no longer backed 1-to-1 by U.S. dollars in a Tether bank account, because a substantial portion of the backing in the Deltec account had been transferred to Bitfinex to make up for the funds taken by Crypto Capital, while the corresponding funds transferred from Bitfinex’s Crypto Capital account to Tether’s Crypto Capital account were impaired by Crypto Capital’s actions.”

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