The drama continues for Bitfinex and Tether.

Last week I [wrote](https://steemit.com/bitcoin/@g-dubs/the-new-york-attorney-general-goes-after-bitfinex-and-tether) about how the New York Attorney General was going after both Bitfinex and Tether.

The NY AG alleges Bitfinex used Tether reserves to cover an $850 million loss.

The hits keep coming…

<center> https://i.postimg.cc/PqbtB4Dd/usdt600.png </center> 

First, an affidavit came out from Tether’s general counsel, Stuart Hoegner, stating:

*“As of the date [April 30] I am signing this affidavit, Tether has cash and cash equivalents (short term securities) on hand totaling approximately $2.1 billion, representing approximately 74 percent of the current outstanding tethers.”*

What? Only 74% backed???

Then it [came out](https://modernconsensus.com/cryptocurrencies/tether/feds-justice-hsbc-account-bitfinex-seized/) that the U.S. Department of Justice has gotten its hands on part of the “missing” $850 million.

The Feds were able to seize the funds from a HSBC bank account.

Now, Bitfinex is trying to raise $1 billion in an initial exchange offering (IEO) for a token called LEO, which will be the utility token for the ecosystem.

Sure looks like they’re trying to fill a hole to me.

Meanwhile, USDT stays around $1… smh.

_____________________________________________________
<center>For more on cryptos follow me @g-dubs and on [SteemFollower](https://steemfollower.com/?r=1283) </center>
<center>Use my referral link to buy Bitcoin, Ethereum, and Litecoin at [Coinbase](https://www.coinbase.com/join/53b4b168d660043955000006)
or [Abra]( https://o8ca.app.link/ScLxqQCtrR?_p=f54a2543ea28d4607c820a77) 
and trade cryptos on [Binance](https://www.binance.com/register.html?ref=10079388) and [Bibox](https://www.bibox.com/signPage?id=11485799&lang=en)...
And delegate SP with [MinnowBooster](https://www.minnowbooster.com/vote-selling/?ref=752) </center> 
<center>Crypto + Daily Fantasy Sports =[No Limit Fantasy Sports]( https://www.cryptofantasysports.com/User/Register?AflCode=3CD9CB640048762A)
</center>
<center>Shop and earn BTC with [Lolli](lolli.com/ref/M3af8k4IQb) </center>
<center>Earn BTC on [Earn.com](earn.com/gregorywilson/referral/?a=b2xtzvyln760u4b6) </center>