Bitcoin Is Trading at $300 Premium on Exchange Accused of Mischief
- Bitfinex, Tether accused of obscuring loss of money last year
- Tether says its stablecoin is backed 74% by cash, securities
Bitcoin is trading at a more than $300 premium on the embattled Bitfinex cryptocurrency exchange amid speculation investors are exiting the Tether stablecoin in the wake of allegations the affiliated companies that control both the exchange and the stablecoin engaged in a cover-up to hide hundreds of millions in losses.
The New York attorney general last week accused Tether and the operator of the Bitfinex exchange of participating in a cover-up to hide nearly $1 billion in losses in corporate and client funds. The allegation prompted Tether to confirm the stablecoin isn’t fully backed by U.S. dollars, casting further doubt on a corner of the market long roiled by allegations of impropriety. That’s increased demand for Bitcoin, which is trading for about $5,570 on Bitfinex while going for $5,250 on other exchanges.