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Cryptocurrencies Lose $10 Billion on Tether Cover-Up Allegations

Inside The DMM Mining Farm As Japan Unveils Guidelines For Allowing Initial Coin Offerings
Photographer: Tomohiro Ohsumi/Bloomberg
Updated on

Cryptocurrencies tumbled after New York’s attorney general cast fresh doubt on the stability of Tether, a virtual currency that plays a central role in trading on crypto exchanges around the world.

Bitcoin sank 6.4 percent to $5,145.33 at 9:55 a.m. in Hong Kong, while the value of cryptocurrencies tracked by dropped by about $10 billion. Tether, the so-called stablecoin at the center of an investigation by New York’s top cop, declined 1.9 percent to $0.99. It typically trades in a tight range around $1.