Bitfinex Allegedly Covers $850 Million Loss With Tether Funds


#1

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:


#2

Whenever there is BAD NEWS about BTC or a large crypto exchange the market usually overreacts and panic sells; prices go down 5-10% only to rebound a couple days later. Historically right after a flash crash has been a good buy opportunity, as these rapid movements do not impact the overall trend (be it bullish or bearish).


#3

cheers for posting this and explaining :slight_smile:


#4

850mio? peanuts. :lollipop: :unicorn: