Cryptocurrencies
Tether Says Stablecoin Is Only Backed 74% by Cash, Securities
- Tether, Bitfinex backers seek to vacate New York injunction
- New York alleges firms engaged in coverup to hide losses
Tether
Photographer: Andrew Harrer/Bloomberg
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The companies behind the digital exchange Bitfinex and the cryptocurrency Tether said the so-called stablecoin is backed by cash and short-term securities equal to 74 percent of the outstanding coins rather than completely pegged to the U.S. dollar.
The disclosure was included in a response Tuesday with the Supreme Court of State of New York seeking to vacate or modify an injunction filed against them by the New York Attorney General last week in an effort to prevent disruptions to its business.