The lawsuit against Tether and Bitfinex has ended, but the controversy does not stop, as Anthony Pompliano defends stablecoin.
Crypto influencer Anthony Pompliano notes that the lawsuit against Tether accused him of creating digital dollars out of nothing, with which he would have inflated the price of Bitcoin. The Federal Reserve, the United States’ central bank, has done something similar in recent months, creating $ 4 trillion out of nowhere to raise asset prices.
He said this in a post that was not meant to be ironic.
Tether was accused of creating digital dollars backed by nothing to prop up Bitcoin’s price, while we watched the Federal Reserve create $ 4 trillion backed by nothing to prop up asset prices.
The irony is unfathomable.
– Pomp 🌪 (@APompliano) February 23, 2021
“Tether was accused of creating digital dollars out of thin air to support the price of Bitcoin, while we saw the Federal Reserve create $ 4 trillion out of thin air to support asset prices.
The irony is unfathomable. ”
In fact, the Federal Reserve, in order to save the US economy as it faces the pandemic crisis, flooded the country with printed dollars. However, printing dollars artificially runs the risk of producing inflation and devaluing the currency.
But nobody seems to have stopped the Fed.
The Tether case ended after New York prosecutor Letitia James accused Tether and Bitfinex of being guilty of having
“Covered up huge financial losses to keep your scheme going and protect your bottom line.”
In addition, for the prosecution:
“Tether’s claims that its virtual currency was fully backed by US dollars at all times were a lie.”
Tether left with a $ 18.5 million fine and an immediate suspension of operations in the state of New York.
It is worth mentioning that Tether was not affected by the pressures of this process, so much so that its capitalization has been growing over time. In addition to being the best stablecoin on the market, it has recently exceeded $ 30 billion in market capitalization, reaching $ 34 billion today.
Pompliano: “nobody cares about the Tether case”
In 2019, Anthony Pompliano tweeted about this case, claiming that no one cares about the legal Tether and Bitfinex case.
Just at the time the case ended, that is, yesterday, the market was in one of its worst moments in recent months, with Bitcoin losing up to 20%, dropping to $ 45,000. In the past few hours, however, the market appears to have recovered and Bitcoin has returned to $ 50,000, while Tether, with its stable nature, remains firmly anchored in its dollar value.
Ironically, his stability and the need to prove he has reserves cost a lawsuit and a $ 18 million fine. The Tether case is likely to have serious repercussions: the United States Congress is working on a law that requires stablecoins to have their reserves with the Federal Reserve, a way to prevent digital dollars from being produced out of thin air.