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Bitfinex Tether issue

Bitfinex Tether issue

Here’s What We Know About the Bitfinex and Tether Issue

On Thursday, April 25, reports surfaced that The New York Attorney General’s office is looking into Bitfinex. Specifically, NYAG Letitia James said she had received a court order against iFinex Inc., which is the company behind Bitfinex. The order told them to stop breaking New York law.

Here’s what we know.

The Bitfinex and Tether Issue: April 2019

According to reports, The New York Attorney General’s office is looking into iFinex. Why? Because the office alleges that Bitfinex lost more than $800 million. The crypto exchange then proceeded to use funds from Tether, a stablecoin operator also operated by iFinex, to cover the shortfall.

In the Thursday issued press release, the world was informed that Bitfinex sent $850 million to Crypto Capital Corp and that iFinex, based on an investigation by Letitia James’ department, has been found to have “engaged in a cover-up to hide the apparent loss of $850 million of co-mingled client and corporate funds.”

Many are said to have been impacted by the Bitfinex and Tether issue. With that in mind, James says her department is doing everything in its power to stand up for those affected. “We will continue to stand-up for investors,” explained James, “and seek justice on their behalf when misled or cheated by any of these companies.”

It’s important to note that under the court order, the following are to cease loaning, accessing, or, according to CoinDesk, “making any other claim to the dollar reserves held by Tether”: iFinex officers, agents, employees, contractors, directors, and assignees.

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But just because NYAG has taken charge doesn’t mean Bitfinex is stepping aside. After the press release on Thursday came out, Bitfinex issued a response. In the response, the crypto exchange said the New York Attorney General’s “court filings were written in bad faith.” Bitfinex also said the filings were “riddled with false assertions, including as to a purported $850 million ‘loss’ at Crypto Capital.” You can read the crypto exchange’s full response on the Bitfinex and Tether issue here.

Takeaway

Do you have any thoughts on the Bitfinex and Tether issue? Let us know in the comments below!

Featured image: DepositPhotos © Piter2121

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