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Bitfinex and QuadrigaCX were the two biggest Exchange issues that were revealed during his year. After the obituary of QuadrigaCX CEO Gerald Cotten, about $ 190 in cryptocurrencies were declared "lost forever" as they were stored in the cold Cotten portfolios.
With Bitfinex, he was accused of mismanagement and then recovered nearly 850 million dollars using the fixed currency, the USDT. The value of funds and cryptocurrencies is $ 1.04 billion. In addition, Bitfinex maintained a "not guilty" position and said the funds are not lost but seized and preserved.
Read also: Bitfinex Vs. New York AG case: 850 million dollars lost? Here are the facts and updates
Who seized their funds and why?
Although Bitfinex has not yet indicated who or why the funds were seized, this remains the most important point of questioning about their statement issued on April 26, 2019. The New York Attorney General accused the stock market of losing funds. However, the firm replied that the funds are not lost but "grabbed and saved. "
Crypto Capital has "do not"Was cited as defendant in the Bitfinex case, but it seems that Crypto Capital actually had access to or had access to the last $ 850 million deposit. The New York GA accused the company that $ 850 USD traded on Bitfinex since last year had no custody or deposit of any kind protects the US dollar. Necessarily, if everyone tried to withdraw their withdrawals from the stock market, users would probably be very disappointed.
In addition, QuadrigaX also had links with Crypto Capital. According to sources, Crypto Capital also provided services to QuadrigaX. Cotten wrote in an email to Bloomberg on May 17, 2018:
"Companies such as Crypto Capital have proven to be useful in that they function as a payment processor capable of receiving transfers from customers, storing funds, and then processing outgoing transactions as well," he added. . "Crypto Capital is one of those companies. that we have / use. In general, it works well, even if there are sometimes failures. "
Since most regulated banks have refused service to the Cryptocurrency Exchange to manage their deposits, the stock exchanges have had to settle into private companies like Crypto Capital. This Panama-based private company maintains links with banks around the world. According to sources, customers of the company's retail company should have made deposits in Poland, Portugal and elsewhere.
Crypto Capital is therefore the missing link in case it is supposed to have more answers than the stock exchanges themselves. New York Attorney General Letitia James accused Bitfinex of having created an "illusory" cryptocurrency USDT credit over his exchange while it was a $ 625 million "loan" from Tether to Bitfinex.
In addition, while the stock market maintains a non-guilty stand, the funds are not available to him at the moment. As a result, the Attorney General of New York seems to have strong arguments against the stock market. The case is "In the case of Letitia James, Attorney General of New York State v. Bifinex Inc., 450545/2019, "New York Supreme Court, New York County.
Do you think that users of Bitfinex Exchange will encounter deeper problems because of the lawsuit? Please share your views with us.
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Does the Attorney General of New York have strong arguments against Bitfinex? New reports to light
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Bitfinex and QuadrigaCX were the two biggest Exchange issues that were revealed during his year. After the obituary of QuadrigaCX CEO Gerald Cotten, about $ 190 in cryptocurrencies were declared "lost forever" as they were stored in Cotten's cold wallet.
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Nivesh Rustgi
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CoinGape
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