Tether Will Soon Float a New Stablecoin Backed by the Chinese Yuan

Amidst its legal trouble with the New York Attorney General’s (NYAG) office, Tether is looking to float another stablecoin, which would be backed by the Chinese Yuan. This was recently reported by Chinese news platform, ChainNews.


According to the publication, the information was revealed by Zhao Dong, a shareholder with Bitfinex, who also disclosed that the stablecoin would be supported by Chinese Yuan held offshore. Zhao has also further added that one of the first investors in the CNHT project would be RenrenBit, his own digital asset management firm.

Bitfinex/Tether and the NYAG

The relationship between Bitfinex and Tether is a very connected one, with Zhao also touching on this as well. The two firms were in the middle of a scam as accused by the NYAG, for the alleged cover-up of a loss to the tune of $850 million, which occurred on Bitfinex. This began a long period of several court cases and injunctions, most of which have not been playing in the defendants’ favour.

Attorneys representing the defendants recently filed a motion to dismiss the case in its entirety for “extraterritorial” reasons. According to them, the NYAG has no jurisdiction over the case because they claim that the companies did not operate from New York or have any New York clients.

Judge Cohen has since dismissed the motion and discontinued the temporary stay of the investigation. As expected, Bitfinex and Tether have appealed against the ruling. The companies still want the case thrown out as it has so far cost them more than $500,000.

Image Credits: Pixabay

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