NY State AG sues Bitfinex for allegedly using Tether reserve funds to cover withdrawals, after the loss or theft of ~$851M from Bitfinex's payments processor
if they service a substantial # of US customers they don't immunize themselves from US regulations and laws by locating offshore http://www.wsj.com/... Jeff Roberts / @jeffjohnroberts : You go to prison for stuff like this. https://www.wsj.com/... pic.twitter.com/1Wc2kIdUSV Alistair Milne / @alistairmilne : TL:DR the Tether/Bitfinex news:Bitfinex have borrowed ~700mil from TetherBitfinex pay a ‘fair’ interest rate on this loan60million shares in Bitfinex were pledged as collateralIf CryptoCapital release the USD, no problemIf Bitfinex trades profitably, no problem Frank Chaparro / @fintechfrank : Update: Bitfinex has issued an official response, saying the “court filings were written in bad faith and are riddled with false assertions.” They further deny the loss of $850 million from Crypto Capital and instead claim the funds have been “seized and safeguarded.” http://twitter.com/... Sasha Ivanov / @sasha35625 : http://www.bloomberg.com/... That might be a beginning of the end of “backed” stable coins. What sense do they make at all if there's the same old counterparty risk? Katherine Wu / @katherineykwu : 😱 New York AG has determined that “the operators of Bifinex, 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”. http://ag.ny.gov/... Tracy Alloway / @tracyalloway : Bitcoin drops 8% after the New York AG accuses Bitfinex of covering up an $850 million loss of co-mingled client and corporate funds that they'd handed over to a Panamanian firm. http://www.bloomberg.com/... by @eelarson @mattleising @olgakharif http://twitter.com/... Jeff Roberts / @jeffjohnroberts : Key takeaways from Bitfinex fraud: — $850M figure means ~27% of Tether reserves are missing — Risk of short-term liquidity crunch in crypto markets — This is just the start: DOJ likely teeing up criminal charges http://fortune.com/... Bitfinex’ed / @bitfinexed : pic.twitter.com/922eGusTJ8 Rolf / @rolflobker : Crypto Capital was also tied to QuadricaCX https://cryptocapital.co/... Image w/ Bitfinex logo found using Wayback machine, snapshot from Nov 22 2017 pic.twitter.com/ZnCFN0I3Pp @bmmrobertson : Big big news in crypto world. The New York AG is accusing the operator of crypto exchange Bitfinex of an $850 million cover-up relating to so-called stable coin Tether Bitcoin down ~7% on news. @crypto @technology http://www.bloomberg.com/... Bryce Weiner / @bryceweiner : Part of the seized funds in question were in April of 2018 and was actually widely reported. I think that's @FrankoCurrency in the header image. https://cointelegraph.com/... Francis Pouliot / @francispouliot_ : It's not unlikely what I think happened to Quadriga happened also to bitfinex: they got banking problems/censorship, were stuck with a bag of bitcoins from user deposits that were in fact supposed to be fiat withdrawal, price crashed, couldn't hedge, now can't honor at BTC value. Tim Swanson / @ofnumbers : what a coincidence! $1.6m worth of bitcoins that haven't moved since the big 2016 Bitfinex hack happened to move a few hours before the lawsuit from the NY AG was announced: https://twitter.com/... Mike / @_mikemalley : https://coinspice.io/... Patrick McKenzie / @patio11 : Bitfinex lied about their liquidity situation and withdraws being honored as requested. (This is my shocked face.) pic.twitter.com/hB5wrwZe2I Patrick McKenzie / @patio11 : Crypto Capital Corp apparently got all the money after they left Noble Bank. This was problematic because Crypto Capital Corp decided to just, you know, keep the money. pic.twitter.com/Dm97Xry4p5 Patrick McKenzie / @patio11 : Bitfinex uses hawala through friends-of-employees as a settlement layer, according to their lawyers speaking to the NY AG. pic.twitter.com/FHGtpJU9pa Patrick McKenzie / @patio11 : Oh goodness, the NY AG document about Bitfinex would defy belief except it's exactly what you expect. https://twitter.com/... Tiffany Hayden / @haydentiff : If only there were some sort of technology that enabled transparency so financial services couldn't hide an $850 MILLION loss... If we're willing to accept garbage from exchanges, they are more than HAPPY to give it to us. #BTC $XRP https://twitter.com/... Bryce Weiner / @bryceweiner : Here's a thread of the list of tokens traded against USDT, and therefore contain a percentage of inflated value. ABBC ADA AE ANKR AOA BCD BTC BCH BSV BGG BNB BIX BTM BTMX BTS BTT DASH DFT DT EOS ETC ETH ETZ GRIN FET GTC GUSD GXC HC HT ICX INB IOTA LTC MDA MXM NEO OMG ONG ONT PAI Bryce Weiner / @bryceweiner : Here's a list of potentially insolvent exchanges because they hold a percentage of their assets in USDT base pairs. 55 Global Markets ABCC AllCoin B2BX BBX BCEX Bgogo Bibox BigONE Bilaxy Binance Bit-Z Bitfinex Bitforex Bitbu BITKER BitMart Bitmax Bitrabbit Bitrue Bittrex Tony Arcieri / @bascule : Tether is one of the biggest existential threats to the entire cryptocurrency space, and so many turned a blind eye to it in willful ignorance, downplayed the threat, or actively attacked those pointing it out, including me. Welcome to reality https://twitter.com/... @theblock__ : “@Bitfinex misled public: Execs feared $BTC drop to $1,000 as @Tether_to hit $0.86 in October 2018” http://www.theblockcrypto.com/ ... David Gerard / @davidgerard : Quick update: New York attorney general sues Bitfinex, $850m hole in Tether reserves https://davidgerard.co.uk/... pic.twitter.com/VZxFDCi3Ly Bitfinex’ed / @bitfinexed : https://youtu.be/... Tuur Demeester / @tuurdemeester : Today's NYSA lawsuit against Bitfinex be the relevant background to understand why the Tether terms & conditions were changed last month. http://twitter.com/... @theblock__ : Cryptocurrency markets turn red in the wake of Bitfinex and Tether lawsuit http://www.theblockcrypto.com/ ... Frank Chaparro / @fintechfrank : “According to documents provided to OAG by Respondents, by 2018, Bitfinex had paced over one billion dollars of co-mingled customer and corporate funds with Crypto Capital,” the suit notes. http://twitter.com/... Rob Price / @robaeprice : The New York State attorney general's office plans to open an investigation into Facebook's unauthorized collection of more than 1.5 million users' email address books after my scoop on the company's actions, @MikeIsaac reports. http://www.nytimes.com/...