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/ latest / 2019/04 / bitfinex-shareholders-reveal-re-insensitive with allegations of fraud /
Two shareholders of Bitfinex recently revealed the New York Attorney General's fraud allegations regarding the encryption exchange and Tether, who manage the shares, believing that Bitfinex will be able to unfreeze the $ 850 million it claims to have lost .
Zhao Dong, a shareholder of CoinDesk Bitfinex, predicted that the BTC would remain below $ 6,000 for most of 2019 and tried to rebadure the crypto community on the solvency exchange, revealed the financial director of Bitfinex, Giancarlo Devasini, baduring him that this situation would be temporary.
According to the newspaper, Zhao claims that Devasini had told her that the exchanges needed "a few weeks" to unlock the $ 850 million she had "blocked" with a third-party processor, Crypto Capital. He was quoted as follows:
The funds were in several banks in Poland, [the] The United States and Portugal, so I'm not sure, but that's what I heard.
Earlier this week, Bitfinex had been charged by the New York Attorney General with having a $ 850 million hole since the end of 2018, which he would have covered by borrowing millions of dollars from Tether. Crypto Capital allegedly claimed the funds had been seized by government authorities in various countries, while the Bitfinex management believed that the company could be involved in fraud.
To cover the test, Bitfinex reportedly received a $ 625 million transfer of Tether between November of last year and March of this year, before returning. The company then secured a $ 900 million credit line from the company, secured by shares of iFinex. According to NY AG, Bitfinex and Tether are involved in fraud.
In particular, Tether quietly diluted his demand for US dollar reserves in March of this year, probably about the same time he had granted Bitfinex the line of credit. While NY AG claims that the missing funds belong to both Bitfinex's corporate accounts and users, Zhao says they only come from its users.
He stated:
According to the information I currently have, there are no losses, but the funds belong to clients. If the US government seized the funds, he should know, the funds do not belong to Bitfinex or Tether, it's the client's money.
This led to a mbadive sell-off in the crypto market, which reduced the price of bitcoin from $ 5,400 to about $ 5,100 before recovering. The flagship cryptocurrency is currently trading at $ 5,250, according to CryptoCompare data. The sellers showed that traders were still wary of Tether and Bitfinex.
When asked if he was worried, Zhao claimed that he did not trust the companies, who survived a hack in 2016 and a freeze of their funds by Wells Fargo in 2017. According to On its own terms, the Tether model is better than fractional reserve banks, since most banks "only have 2-3% reserves," while Tether maintained "70% reserves" even after the ordeal $ 800 million.
Tian Jia, another shareholder of Bitfinex, revealed that he was still supporting Bitfinex and that he had heard from his executives since the announcement of the news. According to Tian, the Bitfinex management "is still trying to get it". [the funds] back by approaching Panama and the [U.S. Attorney General]. "
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