During an exclusive interview with Yahoo Finance, Dan Roberts [Senior Writer at Yahoo finance ] revealed facts regarding the Tether Bitcoin market manipulation scam investigation conducted by Former FBI Director, Louis Freeh.
Tether, a Hong Kong-based company was the main controversy in the month of June in the cryptocurrency world. This was due to allegations made on the company that it was involved in price manipulation which led to the hike of Bitcoin’s price in December 2017. The allegation was made by John M. Griffin and Amin Shams, two researchers at the University of Texas. The former FBI Director was hired to investigate the company’s transparency.
Dan Roberts stated that he had a conversation with Louis Freeh. Based on the conversation, the FBI agent is all set to dig up more in cryptocurrency investigation.
Dan Roberts said:
“This was the first time that Free has ever investigated anything cryptocurrency related. But we talked about Tether and to me, the interesting takeaway was he said they expect to do more crypto investigations. They are already hearing from people that want those.”
He further added:
“And they might be staffing up at their firm in order to do it. I said, would you create a new unit within the law firm? He said we’ve talked about that possibility. So as far as I can tell, I see that as Louis Freeh going crypto. We talk about “going crypto,” when we cover these stories.”
The investigation revealed that the company had $2.545 billion worth USDT out of which $2.538 billion was in circulation. The revelation was backed by a snapshot taken on 1st June 2018 while ensuring that neither the two banks involved nor the company would know about the snapshot. Although, Freeh’s report did not reveal the name of the banks.
Freeh’s firm claim to be ethical and above board. However, many were curious about the bank names not being revealed and were speculating that the firm was in favor of the company.
According to sources, Tether said:
“Tether and related parties have been the subject of scrutiny over the course of the past several months . . . It is our belief that much of the speculation and negative reporting has been the result of misunderstandings of how it functions.”
Irrespective of this, the majority of the cryptocurrency speculators are skeptical about the authenticity of USDT being backed by US dollars.
Reddit user varun_crypto commented:
“Well, USDT was supposed to hold its value of $1 so that it can act as a good replacement to the USD. As of now, I think it’s doing a good job and that’s all that matters to me. I can safely trade BTC and USDT.”
Another Redditor chrissypie33 said:
“They say that the price has been manipulated. But I don’t understand how BTC price will be influenced by USDT.”
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