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Home / Business / Accused Crypto Exchange Bitfinex increases by 16% of Bitcoin's trading volume (BTC) as analysts weigh on the tether (USDT) debacle

Accused Crypto Exchange Bitfinex increases by 16% of Bitcoin's trading volume (BTC) as analysts weigh on the tether (USDT) debacle



As the cryptocurrency market responds to a 23-page report by the New York Attorney's Office alleging that the digital asset trading platform committed a tremendous amount of fraud, crypto-insiders are burdening the way in which who made these allegations or did not come to light is good, bad or terrible for the cryptosphere.

The lawsuit accuses Bitfinex of crypto exchange intentionally misleading the public. The report said it continued to work with New York companies and use third-party payment processors to process customer requests for payment to fiat because "there was no reliable bank to work with them".

Because Bitfinex and Tether allow customers to deposit and withdraw dollars against virtual currency, companies hold large dollar amounts. and must have relationships with banks that can keep their money safe and handle customer deposits and withdrawals, including banks that operate in the United States and serve US individuals. "

" According to the OAG documents provided by OAG respondents and based on statements made by a lawyer of respondents to OAG lawyers An employee of Crypto Capital told the senior manager of Bitfinex The reason for the repayment of Bitfinex totaling US $ 851

million is attributable to the seizure of funds by state authorities in Portugal. Poland and the United States. Based on statements made by a lawyer to respondents to OAG lawyers, respondents do not believe that Crypto Capital has seized the funds. "

The AG claims that Bitfinex knew that its third-party provider, Crypto Capital, of the controlled funds of $ 850 million refused to liquidate or redeem funds.

The scam included tweets, blog posts, and other communications with investors to cover up serious issues.

"Also on October 15, 2018. Bitfinex published a notice to the market stating," It is important for us to clarify that: All cryptocurrencies and fiat withdrawals are and have been processing as usual without the slightest Disruption … All withdrawals from Fiat (USD, GBP, JPY, EUR) will be settled as usual. "

On the same day of the notice, a senior executive of Bitfinex urged Crypto Capital to release the release funds. He wrote "please help" in vain.

The Hong Kong-based and registered companies in the British Virgin Islands owned and operated by iFinex Inc. are ineligible for any misconduct.

Co-founder of Morgan Creek Digital, Anthony Pompliano lays the whole scandal and all concerns that the actions of the New York Attorney General have far-reaching or lasting effects on Bitcoin or Crypto at the center. He tweets that the news does not matter.

Caitlin Long, a Wall Street veteran, crypto-enthusiast and provincial representative representing the Wyoming Blockchain Task Force, emphasizes that she is blamed for the allegations and the What she calls double standards is "baffled".

She tweeted

"Stunned but not surprised News from .I have it analyzed by other Cryptolawyers, but here are two macro-thoughts: (1) Here's a big double standard. (2) Exchange, clean up your act – cryptographically prove your solvency. [19659003] First of all the double standards: Why did not NY AG throw the Martin Act at Merrill Lynch because they did something really similar from 2009-12? Seriously, why the double standard ??? The SEC's press release cited here: https: / /www.sec.gov/news/pressrelease/2016-128.html…

"The maneuver has freed Merrill Lynch from 2009-12 billion dollars a week to finance their own trading activities, if Merrill Lynch were in the midst of these trades failed, the customers of the company must suffer a massive loss of the reserve account. "

WAIT – PLEASE STOP AND READ READING  [1945 ” width=”18″ height=”18″ aria-label=”Emoji: Up pointing backhand index”/>. It's really important. So Merrill Lynch mixed client funds, used them to cover his own obligations, and if his customers had failed, a massive loss of the reserve account would have occurred. Where was the NY AG?

But there is still MORE! Merrill held $ 58 billion / day (!!!) of the client's securities in an account subject to its creditor lien. According to the SEC, "If Merrill Lynch had collapsed at any time, clients would have been at considerable risk and uncertainty about getting their own securities back."

Yes, Merrill stuff was pretty bad, and they paid a The US dollar fine was $ 415mm for the US dollar in 2016. However, the US Securities and Exchange Commission acted so that it did not cause a sudden panic and triggered the withdrawal of customers from Merrill. But today went by with the "Gotcha" approach, and panic seems to surrender.

So … has done good investigative work here, but needs to be asked why the double standard and why the "gotcha" approach? Why do not you do the same with companies when playing similar cup games ???

Second Point – swap clean out! You really must voluntarily disclose (h / t ), and audited financial reports (h / t ). Failure to do so will force regulators, investors and litigation on unfavorable terms!

The founder and CEO of crypto investment firm Onchain Capital and host of the Crypto Trader show on CNBC Africa, says the news is positive because it will wash away bad actors. He asks how Bitfinex has approved its relationship with a partner that could hold back its $ 850 million.

"Forgive my ignorance, but how can you give a company $ 850 million to handle payments on your behalf without real care / on-the-spot guarantees? "

The CEO of ShapeShift, Erik Voorhees, says the missing millions, while the bad news for Bitfinex proves that Tether exists.

In the wake of the Attorney General's claims, Bitfinex traded top to bottom 284%, according to CoinMarketCap. This resulted in the 7th largest day of Bitcoin transactions.

At the time of writing, Bitfinex trading has declined by -71.2%.

Current Crypto Exchanges by Trading Volume
Source: CoinMarketCap
Crypto Exchanges by Trading Volume after Notice
Source: CoinMarketCap

The trading volume tracker Bitcoinity shows that the stock exchange now totals slightly more than 16% of the Bitcoin trading volume of 20% immediately after the announcement of the AG.

Current total 24-hour Bitcoin trading volume
Source: Bitcoinity
Total 24-hour Bitcoin trading volume after notice
Source: Bitcoinity

In an office-bearer response to the Allega According to the words from Bitfinex, the company is cooperative and compliant and urges the AG to help recover the 850 million dollars in question.

"Bitfinex and Tether were fully cooperative with the New York Procuratorate since both companies work together to regulate everything. The New York Procuratorate should focus its efforts on supporting and supporting our recovery efforts.

According to the AG's office

: "Neither Bitfinex nor Tether are registered in New York for the trial of the proceedings.

Bitcoin is currently down 0.75% to $ 5,250 at the time of writing.

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