Bitfinex has announced that it has repaid its sister company, Tether, USD $100 million of the $700 million it borrowed early last year. This controversial loan sparked rumors of insolvency, and an investigation from the New York State Attorney General.
PAYMENT TIED TO LAST YEAR’S FUNDING DEBACLE
The exchange, once the world’s largest, borrowed the money from Tether after it claimed to have been having trouble with its banking partners. At the time Bitfinex asserted that its payment processor, Panama-based Crypto Capital Corp., froze $850 million of its assets. To ensure solvency, Bitfinex borrowed $700 million from Tether, or so the story goes.
Bitfinex repeatedly assured the public that the loan was legitimate and that it did not threaten Tether’s financial security. Not surprisingly, this move received tremendous criticism, and prompted an investigation by New York Attorney General Letitia James.
Last July the exchange stated that it had begun to pay back the borrowed money. Today’s announcement indicates that it continues to make a good faith effort to resolve the debt. Nevertheless, given the exchange’s track record of obfuscation and privacy, many crypto advocates will no-doubt remain skeptical.
BITFINEX HAS LONG KEPT THE PUBLIC IN THE DARK
Bitfinex has long been highly controversial among crypto investors. Simply put, many do not trust it due to its cult of secrecy. For example, although it is based in Hong Kong, it has not released the location of its servers and infrastructure. Bitfinex has also been known to do business with shady, and often unknown entities. Notably, it apparently entrusted hundreds of millions of dollars to Crypto Capital Corp., which in October saw its owner indicted for fraud.
Bitfinex also has close ties to Tether. The same individuals own both entities. Tether’s operators have long claimed that the stablecoin is fully backed by hard assets, yet have never permitted an independent audit to prove their assertion. Critics insist that without such a review Tether cannot be trusted. Also, this lack of transparency is a key issue in New York’s decision to pursue legal action against it and Bitfinex.
It is worth noting that, despite controversy, Bitfinex has never failed to make good on withdrawals, and has a very respectable operational track record. Although no longer a top global exchange by volume, its large list of trading pairs keeps it a key player. Perhaps this payment to Tether could be a positive step in restoring its less-than-stellar reputation.
Do you think Bitfinex will ever pay back the full loan? Add your thoughts below!
Images via Shutterstock origin »
UNUS SED LEO token is currently adding to the pile of misery faced by iFinex. iFinex, the parent company behind stablecoin Tether and Bitfinex, has been the topic of discussion for all the wrong reasons in 2019.
Earlier this week, the crypto community was in for a shock that shook the crypto market when the New York Attorney General's (NYAG) office pursued an investigation into controversial stablecoin Tether and cryptocurrency exchange Bitfinex that allegedly tried to cover up the $850 million loss.
The Bitfinex and Tether news has created a massive buzz leading people to speculate the aftermath of the lawsuit. Meanwhile, there have been massive amounts of USDT being sent from wallets to exchanges.
The general attorney office of the State of New York accused Bitfinex of concealing the fact of losing $850 million of company's and customers' funds. After this information was published, approximately $350 million in bitcoins and Ethereum was withdrawn from Bitfinex's cold wallets.
The clampdown of the cryptocurrency market by the bear attack seems to be unfounded if one takes the example of XRP movement across wallets and exchanges. XRP, the third largest cryptocurrency has not had a massive bull run in 2019 yet, even when its compatriots saw a significant rise in values.
The Bitfinex and Tether lawsuit by the New York State Attorney General has put the companies in a tight spot and if the suit proceeds in favor of the AG, then the long speculated secrets about Tether and the alleged “fraud” of Bitfinex in covering up $851 million in losses might be out in the […]
The post Bitfinex-Tether fiasco: Bitfinex could be receiving financial back-up while users flee scene appeared first on AMBCrypto.
Bitfinex users and investors seem to be worried about the current situation that the exchange is experiencing. The exchange has withdrawn around 17,000 Bitcoin (BTC) and some Ether (ETH) in the last 24 hours.
Days after the AG of New York announced that it was probing Bitfinex’s parent company, iFinex over a supposed $850 million dollar fraud, the crypto exchange has responded. In a short video shared by the Twitter outlet of Ambcrypto.
Binance, one of the largest cryptocurrency exchanges in the market, has moved over $782 million in Tether (USDT) tokens. Due to this reason, many individuals were wondering what was Binance doing after moving such a large amount of USDT.
After the New York State Department of Financial Services (NYSDFS) accused Bitfinex of covering up to $850 million worth of losses with issued Tether, over 700,000 ether and 17,000 bitcoin have been moved out of recognized Bitfinex cold wallets.
A recent lawsuit by the NYSAG is unveiling a lot of unsettling details about the Bitfinex exchange and the Tether stablecoin. Though there has always been controversy around Tether for its lack of cash liquidity, the bigger allegation at this point is over the missing $851 million that Bitfinex is supposed to have. In an […]
Yesterday’s news of Bitfinex being accused by the New York Attorney General’s office of potentially covering up the loss of $850 million using Tether reserves has caused Bitcoin and the crypto market to plummet and investors to panic, not only about the diminishing value of their holdings, but over the entire integrity of the crypto.
Amy Castor gives a timeline of the events leading up to the accusation by the New York State attorney general's office that the exchange siphoned off Tether coins to cover $850 million worth of lost funds.
The New York Office of the Attorney General (AG) wants to take a closer look into the business operations of Bitfinex and related stablecoin issuer Tether (USDT). According to a legal petition filed with the Supreme Court of New York, the NY Attorney General Office of Letitia James is applying for a court order to investigate Bitfinex’s suite of interrelated companies (including its umbrella firm iFinex and Tether Holdings Limited) for “ongoing fraud” to the tune of $850 million.
By CCN: ShapeShift CEO Erik Voorhees made a valid observation on Twitter today, pointing out that there’s some degree of irony in the charges potentially facing embattled Bitcoin exchange Bitfinex: Tether had the cash reserves, despite wide speculation that the company had issued far more crypto tokens than it could settle.
Following a probe which revealed the apparent loss of $850 million in funds, the attorney general of the State of New York obtained a court order against iFinex Inc. , which operates Bitfinex and owns Tether Ltd.
The crypto community is in an uproar following the New York State’s Attorney General’s office accusation that prominent crypto exchange Bitfinex – tied closely to the controversial stablecoin Tether – had hidden a $850 million loss at the hands of a capital management company.
Amid NY Lawsuit Against Bitfinex And Tether, Paxos Launches $10 Million In Stablecoins Yesterday, The Block reported on a lawsuit initiated by the NY Attorney General against Bitfinex and Tether. Over the course of a 23-page document, the filing explains that the office believes that Bitfinex has been allowing traders in New York to trade, […]
An investigation by the New York Attorney General’s office alleges that $850 million in losses at Bitfinex were covered up by Tether, their affiliate. The allegations are yet another sting for the troubled pair, both owned by iFinex Inc.
The New York Attorney General Office in a statement on Thursday alleged that Bitfinex lost $850 million and as a coverup used customer and corporate funds from the USDT stablecoin operator Tether. “The issue is not printing tethers to manipulate bitcoin, but Bitfinex having funds “stolen” and then using Tether's funds,” said economist and crypto […]
The New York Attorney General (NYAG) Office on April 25, 2019, published a document alleging cryptocurrency Bitfinex and its popular dollar-backed stable coin Tether (USDT) of colluding to cover $850 million loss in client and corporate funds.
By CCN: Within a day of learning it had to cease operating in New York, Bitfinex issued a rebuttal desperately trying to explain it is financially solid. Its letter coincided with one from Tether.
As crypto-traders departed from Bitfinex following the alleged cover-up of $850 million using the stablecoin Tether, the cryptocurrency market posted significant losses. The second largest crypto-asset, Ethereum [ETH], was at press time, holding a market cap of $16.
Tether is on the spotlight, again. This time, the largest stablecoin in the market is at the center of an alleged $850 million cover-up. The New York attorney general Letitia James obtained a court order yesterday enjoining iFinex Inc.
Roughly 300 Bitcoin, at the current rate of $5,300 per BTC amounts to about $1.5 million that was never recovered following the hack of Bitfinex cryptocurrency exchange has been moved. This is the first time these coins have been moved which appears to be in a total of 13 new addresses. These wallets have no […]
What many thought would never happen did on Thursday. Just days after Tether Limited, the company behind the USDT stablecoin, minted $300 million worth of its crypto asset, reports revealed that its operator, iFinex, may be on thin ice.
Bitfinex has withdrawn funds worth almost $89 million from its cold wallets in the wake of the U.S. Attorney General’s accusations of covering up an $850 mln funding gap
The New York Attorney General’s office is suing Tether and BitFinex for fraud worth roughly $850 million. Now, critics insist USDT Should be de-listed.
The post Tether (USDT) Losing 30% Of Its Market Cap A Blow, BitConnect Tokens? appeared first on Ethereum World News.
Cryptocurrency exchange Bitfinex has come out to defend its position after the New York State Attorney General filed a lawsuit against the company and Tether for fraud. Bitfinex maintains that the report claiming that it has lost $850 million at Crypto Capital were false.
The crypto market has dumped in the last couple of hours, with Bitcoin (BTC) dipping to as low as $5057 on some exchanges. This followed a Wall Street Journal article that Bitfinex used tether reserves to mask an $850 million hole.
By CCN. com: The valuation of the crypto market dropped by $8 billion in a matter of minutes after the office of New York Attorney General’s office filed a lawsuit against iFinex, alleging Bitfinex of mismanaging $850 million in Tether funds.
Following the New York Attorney General’s accusations of a $850M cover-up by Bitfinex, the company has issued its response. Binfinex refutes the claims as ‘riddled with false assertions’ and that the funds are not lost.
If you are our BitcoinExchangeGuide’s regular reader. You should already know about the shady connection between Bitfinex and Tether. This Thursday, a document by the New York Attorney General’s (NYAG) office revealed that iFinex, the company behind both Tether (USDT) and Bitcoin exchange Bitfinex, is being sued. In the press release, the attorney general Letitia […]
On Apr. 25, the office of New York Attorney General Letitia James alleged iFinex, the company behind Bitfinex and Tether, of misusing $900 million of Tether’s cash reserves to hide an $850 million loss.
On Apr. 25, the office of New York Attorney General Letitia James alleged iFinex, the company behind Bitfinex and Tether, of misusing $900 million of Tether’s cash reserves to hide an $850 million loss.
The New York attorney general’s office has accused iFinex, which operates the Bitfinex exchange platform, of using the exchange's Tether reserves to cover up $850 million dollars that went missing last year.
By CCN: The office of New York Attorney General Letitia James has officially obtained a court order to request iFinex Inc, the operator of bitcoin exchange Bitfinex and Tether, to cease operations in New York.
Around 300 of the Bitcoin that were never recovered following a hack of the crypto exchange Bitfinex have moved today. The hack in the summer of 2016 cost the company $73 million at the time. The coins appear to have been moved to a total of 13 new addresses.
Tether, the largest stablecoin by market capitalization, has issued over $300 million in USDT during the last week. The sudden increase in supply has resulted in accusations that Tether is, once again, engaging in market manipulation and that its stablecoin is still unbacked by dollar reserves.
As many of our regular readers are probably well aware of, the world's largest cryptocurrency by total market capitalization — Bitcoin [BTC] — has been gaining a lot of mainstream media traction recently.
Bitcoin [BTC], the first and largest cryptocurrency in the market, has been in the news since it breached the $5,000 mark. This breach contributed to several other coins gaining momentum in the market, with many rising by double-digits.
Bitcoin [BTC], the first and largest cryptocurrency in the market, has been in the news since it breached the $5,000 mark. This breach contributed to several other coins gaining momentum in the market, with many rising by double-digits.
This article was originally published by 8btc and written by Lylian Tang. The Chinese security service provider 360 Security has issued a warning that a large number of crypto exchanges have been targeted by the North Korean hacker group Lazarus and that the number is still rising after the recent hacks of crypto exchanges DragonEx, Etbox and BiKi.
As QuadrigaCX’s legal counsel descends on the courtroom in Halifax, Nova Scotia, for another round of legal proceedings, the court monitor’s third report on QuadrigaCX’s finances — specifically its revelation that the exchange’s cold wallets are empty — lays out some hopeful avenues for fund recovery — and some frustrating dead ends.
Ripple (XRP) up 3. 5 percent Comments from SEC will clear XRP classification status Transaction volumes more than double those of early Feb—streams from BitFinex How XRP is classified will determine whether the asset will crumble or soar.
A South American agribusiness company announced it received an unsolicited, non-binding proposal from Tether Investments. The proposal is to acquire a majority stake through a tender offer at $12. 41 per share.
Tether is exploring brain-computer interface technology with the development of BrainOS, an open-source platform designed to keep this innovation decentralized and accessible. The company announced the initiative on its official website through an interview excerpt from its CEO, Paolo Ardoino.…
Tether жестко раскритиковала аналитиков JPMorgan за предположения о необходимости продажи своих биткоинов для соответствия новому законодательству США. 12 февраля аналитическая группа под руководством стратега JPMorgan Николаоса Панигирцоглу (Nikolaos Panigirtzoglou) опубликовала отчет, в котором предположила, что предлагаемые в США законопроекты о стейблкоинах могут вынудить Tether продать часть своих биткоинов.
Blockchain developers using the TON stack can now deploy tokens from over 100 networks through LayerZero’s infrastructure. Cross-change bridge protocol LayerZero has joined forces with The Open Network (TON) — also known as just TON — in a bid to…
Tether has announced a strategic investment in self-custodial crypto wallet Zengo to enhance the security and accessibility of blockchain tools. In a press release shared to crypto.news, Tether (USDT)’s investment aims to help Zengo Wallet further develop its blockchain-based financial…
In an exclusive interview with crypto.news, Bitstamp US chief executive shares his view on how MiCA could pave the way for similar regulatory frameworks in the U.S. The European Union’s landmark regulation for the increasingly high-profile crypto sector came into…