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Bitfinex will greatly challenge $ 850M lost tether "False Assertions"

After the New York Attorney General has charged a bit of $ 850 million by Bitfinex, the company has issued its reply. Binfinex rejects claims such as "riddled with false statements" and that the money is not lost.

Cover Requirements

According to the NY lawyer's statement, Bitfinex lost $ 850 million of customer money. This had been sent to and arrested by the payment company Crypto Capital Corp. The claim continues to say that Bitfinex used cash reserves from connected stablecoin, Tether, to cover the deficit.

  Bitfinex - Fostering Innovation

The AG, Letitia James, claims that this "loss of funds" and the transfer of reserves was not revealed by the operator of both Bitfinex and Tether, iFinex. Therefore, it had "engaged in a cover to hide the obvious loss of $ 850 million by merged customers and corporate funds."

In the case of press time, the price of USD Tether 0 0 [19659009] has dropped its $ 1 point. At the same time, the competitors stablecoin competitors such as USD Coin 0 0 and TrueUSD 0 0 now with a small premium.

This suggests that investors are

worth noting Bitcoinist reported yesterday that the range of tethers has reached a full-time class.

Bitfinex and Tether are financially strong & # 39;

19659003] Bitfinex replied today by claiming that AG's submissions:

… were written in bad faith and sentenced with false claims, including an alleged $ 850 million "loss" at Crypto Capital.

It claimed that these funds were not lost, but had "actually been arrested and protected," and it worked actively to get the funds released. It continued to chastise AG not to do more to support and support its recovery efforts.

Both Bitfinex and Tether are economically strong – completely stop. And both Bitfinex and Tether are committed to combating this gross appeal by the New York Attorney General's office against companies that are good corporate citizens and strong supporters of law enforcement. Bitfinex and Tether will challenge this and all other acts of the New York Attorney General's office.

Double Standards

Caitlin Long pointed out on Twitter that although the claims were true, NY AG was guilty of dual standards. As of 2009-12, Merrill Lynch, according to SEK:

used customer funds, used to cover its own obligations, and if it had failed, customers would have been exposed to a "large deficit in the reserve account". [19659021] Which is essentially what AG accuses of iFinex of. But while the SEC dealt with the Merrill Lynch case without causing panic and customer withdrawal, the move from AG has just been triggered for iFinex.

She also urged exchanges to clean up her actions regarding transparency and proof of solvency, to avoid such situations.

The problem

The lawyer's general secretary claims that the Tether funds were extended as a credit line over three years with a 6.5% interest rate. An iFinex share fee of 60,000,000 shares secured the loan.

Entrepreneur and commentator Alistair Milne commented on the situation quite briefly and stated that, as long as "Bitfinex is trading profitably, no problem".

Who takes us back to openness and information.

If iFinex told customers and investors about this alleged "attack" and "loan", would they now have a problem? And is AG's gotcha approach really justified here?

In any event, it is important to note that there are no criminal sanctions at this time.

Is NY Generaly Attorney Acting in "bad faith"? Share your thoughts below!

Pictures via Shutterstock

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