Stealing Tether funds to fill vacancies? Bitfinex is a bit fat.
For the cryptocurrency market, the past two hours have been extremely long and tormented.
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- Blockchain Weekly | Bitcoin fell after seven weeks of rising, weekly new address -22.18%
Tether gets into trouble, BTC or facing a "death"?
According to a press release issued on Thursday, the Office of the Attorney General of New York claimed that the crypto exchange Bitfinex lost $850 million and then sneaked a vacancy with Tether's nearly $1 billion in cash reserves. New York Attorney General Letitia James announced that she had obtained a court order against iFinex Inc., ordering it to stop violating New York law and deceiving New York residents. It is reported that iFinex Inc. operates both Bitfinex and Tether.
After the news broke out, Bitcoin fell sharply. In just 30 minutes, the BTC price of the Coinbase exchange dropped from $5,550 to a recent low of $4,950, a drop of 10%. The altcoin money followed the "coin king" and the USDT of some exchanges fell to $0.98.
In addition, the bitcoin quotes on the Bitfinex exchange have been discounted for the first time since the beginning of the year. On December 29 last year, the bitcoin price of the Bitfinex exchange reached a record high of $198, which was a record high. Since the beginning of this year, the premium has continued to narrow. After a sharp drop this morning, Bitfinex Bitcoin offers a better price than the currency. The first discount since November 30 last year. Bitfinex bitcoin quotes fell to a minimum of 5048USDT in the morning today, and the two exchanges are currently basically flat.
However, there are also market views that the collective decline in mainstream currencies may not mean that the currency market is facing a collapse.
The cryptocurrency researcher Hasu pointed out that Bitfinex's use of the Tether funds reserve proves that there is financial support behind the USDT.
In addition, CNBC host Ran NeuNer said that the Bitfinex incident could "further confirm that we are in a bull market. First, the market reacted to the news; second, the market rebounded rapidly."
Bitfinex responded quickly, but could not stop the spread of panic
An hour after the "Wall Street Journal" and other major media broke the news of Bitfinex stealing funds, a Bitfinex employee who called "Garbis" voiced at the Reddit official forum, saying that the Bitfinex team "is reviewing relevant information and documents". A statement will be issued on this matter as soon as possible.
Despite this response, most people in the market think it is meaningless, and Bitfinex users revealed that they are withdrawing funds from the trading platform.
Venusian bitcoin enthusiast Eduardo revealed that although he did not sell BTC, he was withdrawing his funds from the Bitfinex platform. It is reported that many people in the encryption community have also made similar remarks, and posted a screenshot of their withdrawal request to express doubts and dissatisfaction with the Bitfinex approach. However, it is not clear whether these withdrawal requests will be processed.
In addition, Whale Alert transfer monitoring data shows that a large amount of about 4,000 BTC funds will be transferred from Bitfinex to the unknown exchange.
USDT continues to issue additional shares
Yesterday, the onion article mentioned that on April 25th, Tether issued a large number of USDTs on the Bitcoin-based Omni protocol, Ethereum and wavefield platforms, with new releases reaching 300 million USDT, 70 million ERC20 USDT and 49.9 million TRC20 USDT respectively. A total of approximately 420 million USDT.
But the Bitfinex accident apparently could not stop the pace of Tether's issuance.
According to data from the PeckShield Situational Awareness Platform, Tether today added a $100 million USDT to the Ethereum network at 0:32 am, with a block height of 7,637,646. Up to now, Tether has issued ERC20 USDT on the Ethereum network for the fifth time this month, with a total circulation of 400,010,000.
After a large number of additional issuances this month, the USDT market value surged above the $2.8 billion, and the market value once broke through the all-time high.
Author: Gu Mengting
Source: Shallot blockchain
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