Twitter to eat melon: thinking by Bitfinex 850 million

Tether and Bitfinex, who are constantly questioning, are coming to the screen again.

On April 25th, local time, a document issued by the Office of the Attorney General of New York became the focus of the cryptocurrency community. The document pointed to Bitfinex’s secret use of Tether’s funds to fill the exchange’s $850 million loss.

As soon as the documents came out, in addition to the media in the currency circle, the mainstream media including the Wall Street Journal and Bloomberg also reported the news. Affected by this news, the market value of cryptocurrency fell nearly 10 billion US dollars. Bitcoin has fallen below $5,200 and is now quoted at $5,280. The stable USDT issued by Tether fell from a high of $1.01 to $0.99 at the time of publication.

Usdt

In the case of continuous fermentation, Bitfinex also stood up to show its position. The exchange’s official announcement stated that the documents issued by the Attorney General of New York did not match the facts. The $850 million did exist, but it did not disappear, but was “blocked and protected”. Bitfinex also insists that it will fight the ultra vires of the Attorney General's Office.

In fact, Tether and Bitfinex were not the first to get involved in the storm. Earlier, due to the high degree of overlap between the teams of the two companies, the community questioned. Later, some people thought that Tether did not hold 100% of the reserves.

For today's news, the people who eat melon on Twitter are starting to move.

There is a rush of Crypto Capital:

Bitmex

It is reported that Crypto Capital is a payment processing company and holds funds from other exchanges, including QuadrigaCX. According to a survey by research firm BitMEX Research, Crypto Capital's parent company, Global Trade Solutions, is a member of the Swiss anti-money laundering regulator ARIF.

There is a Tether and Bitfinex acting style:

Bitfinex equals bank

Erik Voorhees, CEO of the cryptocurrency exchange ShapeShift, said that while forwarding the news:

If this is true, what is the difference between Bitfinex and New York banks? (ie running part of the reserve mechanism)

There is hate iron not steel:

New York Times reporter

Nathaniel Popper, a New York Times reporter who specializes in cryptocurrency and blockchain topics, said:

We wrote about Bitfinex and its internal currency Tether in 2017 and 2018, when Bitfinex was the largest bitcoin exchange. Today, the Office of the Attorney General of New York said Tether and Bitfinex lost $850 million and tried to hide it.

This paragraph is full of "does not listen to the old man's words and losses in front of the eyes" feeling?

There are speculations about the progress of the case:

Case progress

CNBC host Ran NeuNer said:

Even the allegations against Bitfinex and Tether are true; 1. Cases of this nature take several years; 2. Both Bitfinex and Tether are not registered companies in the United States – this is a problem in implementation; 3. The problems discovered two years ago have not been resolved yet…

There are analysis of the impact of the event:

Event impact

The cryptocurrency analyst Travis Kling analyzed the incident from a short-term, medium-term and long-term perspective respectively:

In the short term, USDT and Bitfinex have a lot of uncertainty. In the medium and long term, this is undoubtedly a positive. Eliminate suspicious companies and perpetrators and replace them with trusted institutions operated by trusted people.

There are also accusations that the Office of the Attorney General creates panic:

Caitlin

Caitlin Long, head of the blockchain working group in Wyoming, believes that in the case of the New York Attorney General's Office, there is a double-label suspicion. Compared with the case of New York Merrill Lynch, it said that the Office of the Attorney General deliberately issued documents to create panic and affect market sentiment. In addition, she also pointed out that cryptocurrency exchanges must be “bright and fair” and actively disclose the necessary confidence, otherwise regulators and investors will force them to do so.

Also seriously eat melon:

Delist usdt

Twitter user Alex Cobb Aite coin CEO Zhao Changpeng:

Removed from Tether.

(Refer to the stem of the lower BSV )

In response to this incident, Zhao Dong, the founder of the DGroup founder of the Chinese community from Bitfinex, also commented on the circle of friends:

Personal opinion and speculation have not been confirmed with the official:

1 Bitfinex did not lose money. Some funds were frozen, so some funds are definitely not available, which makes it difficult to withdraw cash within a certain period of time. This is a known situation.

2 I guess Bitfinex has not used Tether's reserve funds, otherwise Bitfinex will not restrict user withdrawals. Tether does not restrict user withdrawals.

3 I believe Tether is currently a full reserve. As for the evidence, I definitely can't provide it. This is the official evidence to make everyone convinced.

The above is still a personal opinion and speculation, may not be correct, the specific situation, I will communicate with Bitfinex today to confirm.

In addition, the New York side has thrown this question when the USDT circulation has just reached a new high. Does anyone feel embarrassed?

Has this $850 million really disappeared? What do you think?

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Market

Wu's Weekly Picks: HSBC launches cryptocurrency ETF, US SEC rejects spot ETF application, Azuki criticized by community, and top 10 news (June 24-30)

Author | Wu's Top 100 Blockchain News This Week. US SEC Returns Spot ETF File According to WSJ, the US...

Blockchain

Unveiling SBF's Defense Draft of up to 250 Pages I Did What I Believe Was Right

SBF traced his development journey, from his childhood in Palo Alto to the top floor apartment he purchased near the ...

Blockchain

Coinbase publicly acknowledges that 3,420 user information is threatened by registration vulnerability

According to foreign media, Coinbase Exchange acknowledged in its latest blog post that a vulnerability in their syst...

Opinion

Exclusive Interview with dYdX Foundation CEO dYdX Chain Abandons Off-chain Order Book, Aims to Become Public Infrastructure

The CEO of the dYdX Foundation, Charles, believes that dYdX will develop towards becoming a derivative giant, and bec...

Blockchain

How to establish a compliant cryptocurrency exchange following the consecutive lawsuits against Binance and Coinbase?

Let's talk about the SEC's charges against Coinbase, which won't surprise any lawyer practicing in the United States ...

Blockchain

We sorted out 40 "running road" cryptocurrency exchanges, all of which share these common routines

Article | Interchain Pulse · Liangshan Huarong On February 23, the ZG exchange was exposed as suspected to be ru...