Bitfinex says it if does not meet its goal of selling one billion tokens in the private offering, it will continue to pursue other avenues to sell the tokens.
“If fewer than 1 billion USDT tokens are sold by private token sale, the Issuer may thereafter sell remaining tokens at times, and in a manner it deems appropriate in its sole discretion, consistent with applicable law.”
Bitfinex turned to cash reserves backed by USDT
The AG says that then the exchange turned to cash reserves that are backing the stablecoin Tether.
The AG alleges that Bitfinex used Tether’s cash reserves to pay customers who have been requesting to withdraw fiat currencies from the exchange.
“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 of co-mingled client and corporate funds.”