Here is the statement from Attorney General Letitia James:
“Our investigation has determined that the operators of the ‘Bitfinex’ trading platform, who also control the ‘tether’ virtual currency, have engaged in a cover-up to hide the apparent loss of $850 million dollars of co-mingled client and corporate funds. New York state has led the way in requiring virtual currency businesses to operate according to the law. And we will continue to stand-up for investors and seek justice on their behalf when misled or cheated by any of these companies.”
Some traders on twitter were claiming this news caused this current dip & that the announcement must have been leaked:
Bitcoin price chart:
Not sure about that myself, think I agree more with this guy:
The odd thing is that Bitfinex’s response doesn’t really deny the accussation but simply says it is made in:
bad faith and are riddled with false assertions, including as to a purported USD 850 million “loss” at Crypto Capital.
Time will tell? Or more likely we will never really know the full story.
Can learn more here: