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Tether, Bitfinex Get Summons From US Regulators

Announcement: Nathaniel Popper, a reporter from New York Times, has claimed in a tweet that the summons was delivered on Dec. 6 and not last week, in accordance with ‘source familiar with the matter.’

Main cryptocurrency exchange Bitfinex and token issuer Tether have received summons from US regulators as questions continue to arise about the latter’s ‘true’ cost.

As Bloomberg reports Tuesday, Jan. 30 quoting sources who prefere to remain anonymous, Tether’s notional USD peg has come under increasing distrust, with authorities “constantly” querying its legal providence.

“We constantly receive legal process from law enforcement agents and regulators conducting investigations,” the publication quotes emailed statements from Bitfinex and Tether sent this week. “It is our policy not to comment on any such requests.”

Contradiction has strenghetened around Tether, whose major executive officer Jan Ludovicus van der Velde is also the CEO of Bitfinex, after variability and rumors of Bitcoin price manipulation surfaced late last year.

While it remains uncertain as to what particularly triggered the summons, which both companies received last week, the step comes as less of a surprise amid the flurry of suspicion surrounding them on social media in January.

In reactions following the news, cryptocurrency industry commentators had mixed opinions.

WhalePanda, who has become famous for his trading and business-related tweets, noted the lack of contact between Bitfinex, Tether and US authorities.

In the meantime, Bitcoin prices have dropped on Tuesday, likely caused in part by the news. Charlie Shrem considered those selling off Bitcoin to be “really stupid,” as Tether holdings presented the risk and cryptocurrency presented a “way out” of any financial losses.

As of press time Tuesday, Tether was trading at an average of $0.998, just under parity, with prices having growth as high as $1.05 last month.

Bitcoin dropped an average of 11% in accordance with the data from Coinmarketcap.