Should Tether (USDT) still be worth $1 each following Bitfinex claims?

26 Apr, 2019 | Updated: 26 Apr, 2019
Opinion
Should Tether (USDT) still be worth $1 each following Bitfinex claims?

Following the recent news that cryptocurrency exchange Bitfinex manipulated USDT to cover up for losses on the exchange, should the stable coin still be trading at $1 each following such massive negativite news surrounding the stable coin?  

Yesterday Attorney General James stated "Our investigation has determined that the operators of the ‘Bitfinex’ trading platform, who also control the ‘tether’ virtual currency, have engaged in a cover-up to hide the apparent loss of $850 million dollars of co-mingled client and corporate funds... New York state has led the way in requiring virtual currency businesses to operate according to the law. And we will continue to stand-up for investors and seek justice on their behalf when misled or cheated by any of these companies."

The news appeared to have a negative effect on the market with a massive sell-off on BTC as prices plummeted, with BTC dropping to just above $5,000. 

Chart provided by Tradingview

Questions have once again surfaced surrounding the legitimacy of the USDT stable coin and weather it is truly backed by real US Dollars. Should the stable coin really still be worth $1 following such damning evidence against Bitfinex and Tether? 

Community sentiment did not appear to think so: 

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