Bitfinex- Too big to fail?

by Blockspectator News 2 weeks ago

Where there’s smoke, there’s fire. The charges brought against iFinex, the parent company for Bitfinex and Tether, are an indicator of the opaqueness surrounding the operations of Bitfinex and Tether.

House of Cards

When the NYAG made her charges formal, Bitfinex and Tether released a statement arguing that there was “no ongoing fraud” and that the OAG made the charges based on “Incorrect or incomplete information.”

The US government launched investigations into the operations of cryptocurrency exchanges and other related business in 2018. For the OAG to make such an accusation, serious facts and evidence have to be involved. It is also worth noting that the government serves its people while investors protect their assets.

Having denied the “misappropriation of $850 million” Bitfinex and Tether all but confirmed the misappropriation of the stated money by launching a one-billion-dollar Initial Exchange Offering (IEO). The IEO would see Bitfinex and Tether clear up the mess they have created.

Bitfinex was bailed out in 2016 where users lost 36% of their holdings with the company replacing them with native tokens. The same ploy where losses are distributed to users is being carried out in 2019 through the launch of the IEO. What is shocking is that private investors are set to raise $600 million! Who in their right mind would invest in such a shady company?

Further, Tether and Bitfinex recently confirmed that the two companies are intertwined, allegations which they had denied before. The inadequacy of information is just telling of the lengths insiders are willing to go to protect their assets.

Bitfinex/Tether collapse=no Bitcoin damage?

The NYAG has submitted legal documents and action is likely to be taken against iFinex. Once the ball starts rolling, shadier deals are going to be exposed which may result in a collapse of both Bitfinex and Tether. Bitfinex’s failure will not affect the price of Bitcoin; however, depending on the nature of Tether’s collapse, the price of Bitcoin will decrease.

The news surrounding shady dealing within iFinex has caused many USDT traders to stay on high alert. Some have even started moving their assets to other stablecoins. The migration from Tether will help reduce the impact of a Tether collapse were it to come to fruition. Moreover, as the plot thickens, mass migration is inevitable.

The shenanigans around iFinex should not discourage traders from dealing in BTC. The scenarios through which the price of BTC may significantly drop are becoming highly unlikely by the day. With every delaying tactic iFinex employs, the potential damage decreases significantly. The price of BTC will remain stable and even increase after all this.

The aftermath of the NYAG release has seen Bitfinex and Tether defenders arise. Do not be fooled. Investments are being protected. Protect your investments.

Image Source

OneCoin, Scam, Court, Bitconnect General News
7 hours ago

Justice! Former OneCoin Investor Pursues Class Action against Ponzi Scheme

Positive news released by Bloomberg revealed how a former investor of the notorious scam, OneCoin, would be seeking damages and a class action suit to claim back lost amounts defrauded in the scheme. Christine Grablis will represent herself and others, […]

General News
7 hours ago

The Best IPO of 2019 Just Got Even Better

The good times continue to keep rolling for Beyond Meat. Already the most successful IPO of 2019, their stock continues to soar in value as well as receiving bolstering news concerning one of their meat-based rivals. Investor can’t get enough […]

Price Manipulation, Markets, Cryptocurrency, Bitcoin Adoption
2 weeks ago

The Pain of Price Manipulation and why it Sucks!

It is hypocritical for centralized trading outlets to fault cryptocurrency exchanges for price manipulation. Ever since cryptocurrencies and cryptocurrency trading gained popularity, news concerning alleged price manipulation has surfaced and increased significantly. Nevertheless, cryptocurrency trading surges on despite the negative […]

2 weeks ago

Insights Network announces mainnet support for EOS

Following their recent growth, Insights Network is adding support for the EOS mainnet. Insights Network launched the INSTAR blockchain and INSTAR wallet which saw their activity increase significantly leading to their top ten ranking on Block’tivity’s list of most active […]

2 weeks ago

Beam | Keeping your money away from Big Brother

Beam and its underlying technology, Mimblewimble, are an exciting concept in regards to the issue of cryptocurrency privacy. While Bitcoin may be the flagpole cryptocurrency, during transactions, Bitcoin exposes a substantial amount of information, particularly about sender and receiving parties’ […]

3 weeks ago

Bitcoin mega trend- awareness continues to rise

Bitcoin has become a demographic megatrend- according to new research by Blockchain Capital partner Spencer Bogart. In spite of the very challenging year and a half experienced by the cryptocurrency markets, Bitcoin familiarity, conviction, and propensity to own Bitcoin have […]

3 weeks ago

Taxpayers eligible to receive refunds in Bitcoin – potential bait?

U.S tax citizens will now be able to receive portions of their tax refunds in Bitcoin. This was made available following the announcement that the Cryptocurrency payment services firm BitPay will be partnering with Refundo- a company specializing in tax-related […]

3 weeks ago

Cosmos | Is the hype justified?

Over the past month or so, many cryptocurrency enthusiasts were miffed as to why a project called Cosmos (ATOM) was appearing in the top 20 projects on There appeared to be minimal information on the projects supply or even […]

3 weeks ago

What is Mimblewimble? How does it relate to Bitcoin?

Mimblewimble is a relatively new privacy-orientated technology with origins from the Bitcoin world. The project is a new blockchain protocol that aims to improve Bitcoin’s UTXO model. UTXO stands for the unspent output from bitcoin transactions. UTXOs are processed continuously […]

3 weeks ago

How Elastos will usher in the New Internet

Elastos (ELA) is a third generation blockchain platform, similar to EOS and Blockstack. They aim to be the chosen operating system for blockchain and IoT devices. This will allow their virtual machine to run d’Apps on any types of device, […]