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Although Bitfinex, Tether, and the New York Attorney General's office dominate cryptocurrency news, several shareholders have expressed "little concern" with recent allegations.
Talk with crypto news outlet CoinDesk, two shareholders of Bitfinex said they did not care about the exchange of cryptocurrency or claims of bankruptcy of the platform. Although the crypto markets are progressing slowly, the overall landscape is down several billion from the beginning of the week, after the announcement of the cryptocurrency exchange Bitfinex could be facing a solvency crisis .
According to a file filed by the Attorney General's Office in New York, Bitfinex used the funds reserved by Tether as reserved to support their UST currency to cover losses exceeding $ 850 million. While each USDT is supposed to be supported at 1/1 with US dollars – or an equivalent value -, the court process calls into question Bitfinex's solvency, in addition to whether 30% of the USD in circulation is no longer substantiated. The New York AG filing alleges that Tether and Bitfinex acted in ways that defrauded investors and manipulated the price of the cryptocurrency market by circulating coins that are not really guaranteed by their declared value.
Yesterday, April 26, Tether and Bitfinex released a joint statement challenging the filing of the complaint. Both companies denied the charges, claiming
"The records filed by the Attorney General in New York were written in bad faith and are full of misrepresentations, including a so-called $ 850 million" loss "to Crypto Capital. On the contrary, we have been informed that these amounts of Crypto Capital are not lost but properly seized and safeguarded. We work and actively work to exercise our rights and remedies and release these funds. "
In addition, the companies stated that the New York AG office was diverting them from their goal of helping clients obtain their funds, and that they committed to "Fight this blatant drift of the New York Attorney General's office against companies that are good corporate citizens and strong supporters of law enforcement."
Two shareholders of Bitfinex have now stepped in to quell the concerns of investors and claim that the stock market still works comfortably. Zhao Dong, one of the shareholders, previously said in January 2018 that Tether and Bitfinex held more than $ 3 billion in funds to support USDT, a balance that was explained to him at the time by Tether's CFO, Giancarlo Devasini. In a conversation with Coindesk on April 26, Dong said Devasini had told him that Bitfinex would unlock user funds in "a few weeks". According to the report, Dong also said user funds were spread among several banks in Poland, the United States and Portugal. Coindesk also quoted the shareholder Tian Jia as saying that his confidence in the deal remained steadfast even in the face of current allegations.
These shareholders may try to calm the turmoil surrounding Tether and Bitfinex, as both companies face a critical response from the community to the ongoing controversy.
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