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More than three years after initial reports of a federal investigation into the cryptocurrency stablecoin Tether, Bloomberg is reporting that it remains a “potential” criminal case. In response to the report, the price of Bitcoin surged, briefly rising over $40,000 for the first time since mid-June.
Unlike Bitcoin or other cryptocurrencies, a stablecoin ties its value to another asset — which, in this case, is one US dollar — backed by actual money or other holdings. It’s useful for traders to instantly make moves without worrying about rapid swings in the market. However, as many have documented, going back to 2014 when Tether was introduced, there are parts of its history that don’t add up to the story it’s telling.