CoinFlip ATMs won’t support Tether over fraud allegations
Tether and Bitfinex are caught up in a series of concerning allegations in the US
CoinFlip recently announced that it was prepared to start providing support for Tether’s USDT stablecoin in its network of ATMs. Tether would have been the first stablecoin to find itself in the ATMs, of which CoinFlip has 180 around the US. However, as quickly as it made the announcement of support, it made an announcement withdrawing its claim as a result of the ongoing scandal involving Tether, Bitfinex and the State of New York.
On April 30, CoinFlip posted on Twitter that it would begin supporting the stablecoin, stating, “In partnership with @Tronfoundation, we are happy to announce that CoinFlip will be listing $USDT, powered by TRON, at over 180 CoinFlip ATMs!”
The following day, though, it returned to Twitter and said, “UPDATE : Listing of $USDT will be postponed until a later time. However, CoinFlip and TRON will still work together to bring the TRON ecosystem to our customers and make the cash-to-TRON experience as easy as possible.”
The New York Attorney General’s office has targeted Bitfinex for a loss of $850 million that it wasn’t able to locate (part of the funds have reportedly since been found) and submitted a lawsuit against the exchange. However, the loss was made worse after it was revealed that the crypto exchange had tried to hide the missing funds by bringing in Tether to cover the gap. Tether reportedly gave the exchange $625 million and also provided it with a line of credit worth $900 million. Tether and Bitfinex share several executives, making the deals extremely suspect.
Tether is also going to be facing problems of its own. As a result of the ongoing litigation, its lawyers have already acknowledged in court that Tether is no longer completely backed by US dollars.