CoinFlip Postpones USDT Support

CoinFlip Postpones Support for USDT Over Fraud Allegations on Tether

CoinFlip, a popular cryptocurrency ATM operator, has revealed that it has postponed its support for Tether’s USDT stablecoin over the fraud allegations by the New York Attorney General regarding Bitfinex and Tether.

As indicated by the firm’s recent announcement, CoinFlip was set to support Tron’s version of stablecoin, while adding to 180 of its ATMs throughout the US, which means that users would be able to buy the token at tobacco shops, gas stations, and convenience stores in the country.

Speaking to Daniel Polotsky of CoinDesk, the founder and CEO of cryptocurrency ATM Startup revealed the plan of supporting Tron’s USDT was postponed over the NYAG’s case involving Tether and cryptocurrency exchange Bitfinex, that share management, as the firm is willing to make sure that they’re operating 100% lawfully before offering their products to its consumers.

Last month, Bitfinex was accused by the NYAG of having an $850 million hole since late 2018, which the platform reportedly covered by borrowing millions from Tether. The hole turned out to be Crypto Capital, which is a 3rd-party payments processor, claims that they were seized by the authorities from several governments.

In order to cover the situation, Bitfinex is believed to have gotten a $625 million transfer from Tether between from November to March, that the platform returned. Then, it got a $900 million line of credit from the company, secured by iFinex shares. According to the NYAG, both Tether and Bitfinex are engaged in fraud.

Tether, notably in March, quietly diluted its USD reserve claims, and Bitfinex not able to access hundreds of millions, the over 2.6 billion USDT tokens in circulation are currently just 74% backed by cash and equivalents. This is something that saw the Bitfinex and Tether premium surge.

Given the situation, Tron too postponed a $20 million rewards program developed to encourage the USDT adoption. The program would work with cryptocurrency exchanges like Huobi and OKEx to airdrop Tron-based USDT tokens to users.

The goal would be to praise users for moving their tokens from the Omni protocol where the stablecoin was issued initially to Tron.