The New York State Supreme Court published a file on April 26, 2019. In it, Attorney General Letitia James announced that Bitfinex's Panamanian payment processor has lost or stolen $ 850 million of stock market money. This is Crypto Capital.
As reported on the 12th page of the report, a senior Bitfinex manager (codenamed “Merlin”) has been asking a Crypto Capital representative to return the money since April 2018. This is the reason why the Bitcoin Exchange could not meet requests for payments from its customers.As it turns out, Crypto Capital was unable to repay the money due to problems with authorities from Portugal, Poland and the US. To address this liquidity shortage, $ 625 million was transferred from Tether to Bitfinex in November 2018 (both companies have the same ownership). It also created a “credit line” for Tether's reserves. None of these measures were publicly disclosed to investors, as the decisions were made and executed behind closed doors.
Attorney General Letitia James filed a lawsuit to determine if New York-based investors and USDT owners were affected by these obscure practices. This is directed against iFinex Inc., BFXNA Inc., Tether Holdings Limited, Tether Operations Limited and Tether International Limited. The companies are demonstrably operated under the same roof.
A whole series of documents were requested for the trial. This includes information on subpoenas, customer transactions, and accounts from the state of New York. Also, communications must be made about business relationships with any company in New York. It also requires information such as full disclosure of all cash transactions, tax records for 2017 and 2018. Even weekly reports on the issue and redemption of USDT have been requested.
Tether message has led to harsh losses from Bitcoin & Co.
Tether (USDT) has even lost its dollar parity. After the filing of the lawsuit and the first media reports, cryptocurrencies lost 3 to 6 percent in value within the first hour. At the copy deadline, the USDT fell to $ 0.98, again losing its parity with the US dollar.
Bitcoin and Ethereum each lost more than $ 1.5 billion in market capitalization. The total capitalization of cryptocurrencies has fallen by nearly $ 11 billion within the first hour since tethers.
In anticipation of this tense situation, many customers of the crypto-exchange Bitfinex will liquidate their accounts, while tethers will be converted into other cryptocurrencies or stablecoins. In fact, this phenomenon is expected to boost activity as USD $ 2.8 billion invested in USDT can be used to purchase Bitcoin, ethers or other assets.
Author: Peter Joost – Source Post: https://www.kryptovergleich.org/teilmeldung-kryptoboerse-bitfinex-und-tether-werden-von-us-staatsanwalt-verklagt-850-millionen-dollar-verloren/
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