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Crypto market dumps after NY Attorney General files lawsuit against Bitfinex and Tether

Mike Dudas

The cryptocurrency market turned red on Thursday evening as word spread that NY Attorney General Letitia James had filed suit against one of the largest cryptocurrency exchanges, Bitfinex, and its affiliated entity, the stablecoin Tether.

Source: CoinMarketCap

According to the lawsuit, Bitfinex co-mingled client funds with its own while also using up to $700 million in Tether reserves to cover losses related to its relationship with payment processing firm Crypto Capital.