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Title: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: figmentofmyass on April 26, 2019, 08:59:04 AM more unwanted attention for bitfinex and tether.
the new york attorney general has filed court orders against bitfinex and tether. the state alleges tether is defrauding clients, citing an $850 million "loss" that bitfinex allegedly covered using tether customer funds. more fuel for the fire re the tether insolvency rumors eh? https://www.cnbc.com/2019/04/26/cryptocurrency-bitcoin-price-falls-on-ny-ag-bitfinex-probe.html Quote
bitfinex quickly issued a response: https://www.bitfinex.com/posts/356 Quote Earlier today, the New York Attorney General’s office released an order it obtained – without notice or a hearing – in an attempt to compel Bitfinex and Tether to provide certain documents and seeking certain injunctive relief. The New York Attorney General’s court filings were written in bad faith and are riddled with false assertions, including as to a purported $850 million “loss” at Crypto Capital. On the contrary, we have been informed that these Crypto Capital amounts are not lost but have been, in fact, seized and safeguarded. We are and have been actively working to exercise our rights and remedies and get those funds released. Sadly, the New York Attorney General’s office seems to be intent on undermining those efforts to the detriment of our customers. Bitfinex and Tether have been fully cooperative with the New York Attorney General’s office, as both companies are with all regulators. The New York Attorney General’s office should focus its efforts on trying to aid and support our recovery efforts. Both Bitfinex and Tether are financially strong – full stop. And both Bitfinex and Tether are committed to fighting this gross overreach by the New York Attorney General’s office against companies that are good corporate citizens and strong supporters of law enforcement. Bitfinex and Tether will vigorously challenge this, and any and all other actions, by the New York Attorney General’s office. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: IconFirm on April 26, 2019, 09:42:51 AM Good, it's about time someone took Bitfinex down - totally untrustworthy exchange with a history of scammyness & dodgy dealings. Pretty sure this has nothing to do with BTC price though, they're simply not big enough to have any impact.
Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: CryptoBry on April 26, 2019, 01:48:14 PM Good, it's about time someone took Bitfinex down - totally untrustworthy exchange with a history of scammyness & dodgy dealings. Pretty sure this has nothing to do with BTC price though, they're simply not big enough to have any impact. I am also sure that this development has not been the reason for the recent slide of Bitcoin as it is now back to the $5100 level but still it is fine as there should be some contractions from time to time allowing some good momentum to develop naturally. Now, about Bitfinex there seems to be some problems with this exchange and I hope the people behind this firm should work hard to make their image or reputation be good again. We need more and more players in this industry who are not clouding their business with stupid decisions and bad reputation. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: Kemarit on April 26, 2019, 02:08:54 PM Price seems to be fluctuating after the release of this news. So I'm not really sure if this is the main culprit although another news has surfaced that the coins from Bitfinex hacked has moved, (coincidence?). I agree with @IconFirm, time for someone to look at Bitfinex, also need to look at some bad actors from behind. Maybe this case would drag in years, so just brace ourselves if ever there is a negative effect from this news.
Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: riritsurya1202 on April 26, 2019, 03:33:09 PM I still don't understand why people would sell their crypto when the subject being discussed/judged here is one exchange and one stable coin. I mean, if they eventually go down, won't that mean USDT and Bitfinex will just disappear but BTC will stay?
Sometimes the market is really weird. As long as it's bad news for whatever reason it can move the sentiment quickly. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: hatshepsut93 on April 26, 2019, 04:10:40 PM Sad to see Bitcoin's price still being shaken because of one big company, to me it's a sign that Bitcoin ecosystem is still very far from being mature. Regardless whether accusations against Bitfinex are true, today the fear and uncertainty that surround Tether and Bitfinex are strong enough to cast shadow on Bitcoin. I hope Bitcoin is strong enough to not plunge into a bear market if the worst outcome will come true.
Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: suzanne5223 on April 26, 2019, 04:47:14 PM Good, it's about time someone took Bitfinex down - totally untrustworthy exchange with a history of scammyness & dodgy dealings. Pretty sure this has nothing to do with BTC price though, they're simply not big enough to have any impact. I don't trust the exchange in subject either but I'm still surprised that a lot cryptoneir still make use of the exchange despite their previous history and for Tether to be inconjuction with the is something that will make Tether team loose their reputation. I hope justice prevail this time but the situations was not the reason for the dump in price.Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: cr1776 on April 26, 2019, 04:49:25 PM Sad to see Bitcoin's price still being shaken because of one big company, to me it's a sign that Bitcoin ecosystem is still very far from being mature. Regardless whether accusations against Bitfinex are true, today the fear and uncertainty that surround Tether and Bitfinex are strong enough to cast shadow on Bitcoin. I hope Bitcoin is strong enough to not plunge into a bear market if the worst outcome will come true. I think it is one of those "sell the news" events where people hear the news and panic. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: Slow death on April 26, 2019, 05:02:04 PM more unwanted attention for bitfinex and tether. Bitfinex is always getting involved in controversies and these controversies appear whenever the price increases a lot. this becomes very annoying and creates fear in people... we need to use other stablecoin to replace USDT Sad to see Bitcoin's price still being shaken because of one big company, to me it's a sign that Bitcoin ecosystem is still very far from being mature. I agree, but one day this will all change, we just have to be patient Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: 1Referee on April 26, 2019, 05:02:32 PM I still don't understand why people would sell their crypto when the subject being discussed/judged here is one exchange and one stable coin. I mean, if they eventually go down, won't that mean USDT and Bitfinex will just disappear but BTC will stay? Bitcoin will obviously stay, but there are close to 2.9 billion Tether tokens in circulation; if that exits the market entirely, we're going to take a massive plunge, and I am quite certain that if it was to happen today, sub $3000 is what we will be looking at. The thing however is that people don't seem to care anymore about Tether. People as stupid as they are will keep using it because of the utility it offers. I have seen even influential people on social media admit that Tether is very likely a scam for the most part, but it offers a good hedge, therefore they will use it. The situation as it is right now = we finally have the evidence we need to know that Tether is a fractional reserve financial institution. Never in a thousand years will I ever sell one single satoshi for USDT. Fuck that. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: IconFirm on April 26, 2019, 05:54:02 PM Never in a thousand years will I ever sell one single satoshi for USDT. Fuck that. Absolutely the truth. +1 Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: LeGaulois on April 26, 2019, 07:13:36 PM I don't know all the story about the couple Bitfinex & Tether, but where are the funds currently???
There is one party who claims that the funds are lost and the other party who says in defense that no it's "seized and safeguarded". What is the truth in that? It's playing with words you might think, but it makes all the difference. From a neutral point of view, I do not see where this insolvency is. And as proof, the funds seized. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: BitHodler on April 26, 2019, 07:38:25 PM I don't know all the story about the couple Bitfinex & Tether, but where are the funds currently??? As far as I can understand from all the articles that I have read, the funds aren't lost but seized by the authorities of different countries. The positive aspect here is that the funds aren't lost.There is one party who claims that the funds are lost and the other party who says in defense that no it's "seized and safeguarded". What is the truth in that? It's very interesting to see how Tether updated its reserve policy recently, where with the current developments it's clear why they did that. Tether's loan (the debt) to Bitfinex is considered valid backing according to their terms. It means that if every owner of USDT wants to cash out right now, it's not possible. No one is going to agree to owning Bitfinex's debt. If Bitfinex implodes tomorrow, they can't pay back the loan. Bye bye backing. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: bbc.reporter on April 27, 2019, 12:26:43 AM I am bewildered on how Bitfinex's executives are good in problem solving. The exchange has been in the middle of bad controversies but appears to get out of them without anyone of their executives going to prison. That is impressive hehehe!
Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: gentlemand on April 27, 2019, 12:57:10 AM I still don't understand why people would sell their crypto when the subject being discussed/judged here is one exchange and one stable coin. I mean, if they eventually go down, won't that mean USDT and Bitfinex will just disappear but BTC will stay? Sometimes the market is really weird. As long as it's bad news for whatever reason it can move the sentiment quickly. The thing that many people worry about is that Bitcoin's dollar value has largely been created by Tether - quasi dollars created out of thin air. That will cause everyone to wonder about the valuations they've taken for granted. Tether absolutely dominates trading volume, though of course most of that trading volume is fake so it's kind of moot. Tether has always had more power in the market because of its nature as well. Every time they issue more of it it's new money entering, not the same old money sloshing around. These revealments at least point to Tether having the backing they always to claimed to have, until Bitfinex helped themselves to it of course. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: bbc.reporter on April 27, 2019, 01:37:42 AM @gentlemand. However, what is your assessment of this new Bitfinex issue? Will they get out of it or is this finally their time?
My hope is they get out of it to show everyone that regulators cannot and will not have any way to enforce any type of regulations in the cryptospace effectively hehehe. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: buwaytress on April 27, 2019, 10:34:12 AM Wonder how they even came to know about it. Must have been a whistleblower because the way everything was done they were more than prepared, and the response less than. I'm not sure where I stand on this, lacking more information. I remember Coinbase talking about fighting injustice and declaring partial victory when the IRA asked them to give up customer information.
On one hand, dislike this meddling and demands, on the other, these big corporates shouldn't feel like they can do anything with impunity. Anything Tether-related's always been shady to me too. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: gentlemand on April 27, 2019, 10:44:47 AM @gentlemand. However, what is your assessment of this new Bitfinex issue? Will they get out of it or is this finally their time? My hope is they get out of it to show everyone that regulators cannot and will not have any way to enforce any type of regulations in the cryptospace effectively hehehe. Getting the original sum back is 100% out of their hands by the sounds of it. If their money got caught up with cartel laundering it could take forever to untangle. Either way Bitfinex are a throwback and they should've buggered off a long time ago. They're like a fart from 2012/13 that refuses to dissipate. If I were them I would completely abandon fiat and go full alt which is what they should've done many years ago, and that includes Tether. The way they choose to operate is fundamentally incompatible with the conventional finance system and mingling with it is a one way trip to doom. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: figmentofmyass on April 27, 2019, 03:57:30 PM I am bewildered on how Bitfinex's executives are good in problem solving. The exchange has been in the middle of bad controversies but appears to get out of them without anyone of their executives going to prison. That is impressive hehehe! phil potter left bitfinex in june of last year, which was an ominous sign to me. after all they've been through over the years, if phil is jumping ship, there's probably real cause for concern. the feds very well may be closing in on bitfinex as we speak. These revealments at least point to Tether having the backing they always to claimed to have, until Bitfinex helped themselves to it of course. that seems plausible, especially when we consider their TOS change earlier this year which specified USDT is fully backed but not necessarily by fiat reserves. this bit looks especially bad for bitfinex/tether. it means the money was gone and tether issued a loan to bitfinex secured only by shares in ifinex: Quote Under this transaction, the line of credit is secured by a share charge over 60,000,000 iFinex Inc. shares owned by DigFinex. which DigFinex agreed not to otherwise encumber. That transaction closed on or about March 19, 2019. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: bbc.reporter on April 28, 2019, 03:06:42 AM Reading between the lines, I reckon that this fud had the real purpose of trying to damage Tether and USDT. How politically influencial are the Winklevoss brothers in New York? They might want the whole Tether stablecoin market conquered by their own Gemini stablecoin.
Also, why is no one mentioning of the fraud that Cryptocapital did to Bitfinex? Will the New York attorney general also investigate that? Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: figmentofmyass on April 28, 2019, 08:35:52 AM Reading between the lines, I reckon that this fud had the real purpose of trying to damage Tether and USDT. How politically influencial are the Winklevoss brothers in New York? They might want the whole Tether stablecoin market conquered by their own Gemini stablecoin. judging by their unsuccessful attempts at getting an ETF approved, they have no influence. their competitors (in the regulated exchange, stablecoin, and institutional spaces) are wall street players so i don't see them getting very far. Also, why is no one mentioning of the fraud that Cryptocapital did to Bitfinex? Will the New York attorney general also investigate that? it's certainly possible the money was seized. if so then the NYAG already knows about it. this may have been related to the bank seizure in poland last year. 400m euros were seized from an account believed to be connected to crypto capital and bitfinex: https://bitcointalk.org/index.php?topic=3272133.msg34115786#msg34115786 Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: bbc.reporter on April 29, 2019, 03:52:14 AM @figmentofmyass. How about Goldman Sachs, which has an investment in Circle, which also owns Poloniex and has issued its own stablecoin USDC?
There is also JPMorgan that will be releasing its own coin which might be another stablecoin. I reckon the 2 of them have the political influence in New York to use to attack Tether. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: Kakmakr on April 29, 2019, 06:48:25 AM We were crucified many years ago, when we spoke out against these so-called StableCoins and now it is coming back to bite people in the ass. Yes, the US regulators might be over reacting and Bitfinex might not be doing half of the things that is rumoured, but the downfall of these StableCoins was predicted from the start.
You cannot trust Banks with large amounts of Fiat currencies that are linked to their competition. <Crypto currencies> and if you look deeper into this, you will see that the Banks are behind this whole thing. <Blocking access to funds> ::) Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: IconFirm on April 29, 2019, 10:22:41 AM We were crucified many years ago, when we spoke out against these so-called StableCoins and now it is coming back to bite people in the ass. Yes, the US regulators might be over reacting and Bitfinex might not be doing half of the things that is rumoured, but the downfall of these StableCoins was predicted from the start. You cannot trust Banks with large amounts of Fiat currencies that are linked to their competition. <Crypto currencies> and if you look deeper into this, you will see that the Banks are behind this whole thing. <Blocking access to funds> ::) Exactly this. The whole idea of crypto is to alleviate ourselves of banks & their stranglehold on our funds. Crypto goes against everything banks stand for, so when a bank gets involved you know it is for nefarious reasons - greed, control or both. Anything that has bank backing should be considered untrusted, especially exchanges & these so called BS "stablecoins". Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: Betwrong on April 29, 2019, 11:24:28 AM ~ Bitcoin will obviously stay, but there are close to 2.9 billion Tether tokens in circulation; if that exits the market entirely, we're going to take a massive plunge ~ Can you, or maybe someone else, please, explain in more detail how the disappearance of Tether can affect the current Bitcoin price in a negative way? I mean, traders can use other stable coins if they like them so much, right? Also, considering the current total market cap, $170 billion, how disappearance of $3 billion worth of tokens can affect the market significantly? What am I missing here? Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: 1Referee on April 29, 2019, 11:53:15 AM Can you, or maybe someone else, please, explain in more detail how the disappearance of Tether can affect the current Bitcoin price in a negative way? I mean, traders can use other stable coins if they like them so much, right? Tether is by far the most dominant stablecoin in the market. The few other stablecoins don't have the economical mass and adoption needed to support the market.From the 2.8 billion tokens it has in circulation, more than half of that is being used to rotate through Bitcoin exchanges providing a lot of buy support. It's also money that will not be cashed out because of how distributed it is amongst traders world wide. The only way to cash out is to suck off Bitfinex, and who's going to do that nowadays? They probably don't even have the fiat left to actually allow you to withdraw fiat. In other words, people just sit on their USDT hoping for a dump to buy Bitcoin, and this is basically a never ending cycle. Also, considering the current total market cap, $170 billion, how disappearance of $3 billion worth of tokens can affect the market significantly? The total crypto market cap is fake and extremely leveraged. Fake as in the far majority of the altcoins having huge market caps due to their billions of circulating units, and leveraged because of how a little amount of money can pump this market to the moon, because it's super illiquid.What am I missing here? Bitfinex in the past has shown that a 50-100 million USDT injection is enough to pump the price with 10% and that was when the price hovered above $6000. What it meant for Bitcoin was that 50-100 million USDT was enough to increase its market cap with +$10 billion. And as you know, Bitcoin up = altcoins up, so that inflates the global market cap even further. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: gentlemand on April 29, 2019, 11:56:00 AM https://decryptmedia.com/6759/crypto-capital-quadrigacx-bitfinex
This is an interesting read about Crypto Capital. Their MO has basically consisted of opening bank accounts and not telling the banks they're dealing with crypto-related funds. Not exactly sustainable and the type of thing I might risk a few thousand dollars on, not hundreds of millions. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: bbc.reporter on April 30, 2019, 02:54:33 AM @gentlemand. Bitfinex had no choice, however. Their banking partners of the past always relieved themselves and stopped further dealings with Bitfinex to avoid being the target of regulators.
@1Referee. Would you say that a direct attack on Tether is an indirect attack on bitcoin and the cryptospace market? Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: figmentofmyass on April 30, 2019, 08:09:30 AM @figmentofmyass. How about Goldman Sachs, which has an investment in Circle, which also owns Poloniex and has issued its own stablecoin USDC? There is also JPMorgan that will be releasing its own coin which might be another stablecoin. I reckon the 2 of them have the political influence in New York to use to attack Tether. maybe but honestly, i don't think it's a conspiracy. i think they just see the writing on the wall and plan to swoop in on tether's market share when the feds eventually take them down. it's only a matter of time. they're mixed up with drug cartels and hide everything they do behind shell companies with zero transparency. i'm not sure the NYAG can do much, but the launch of CFTC-regulated futures markets put bitfinex/tether in the sights of the CFTC and DOJ, who are investigating them as we speak. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: Betwrong on April 30, 2019, 09:28:54 AM ~ The total crypto market cap is fake and extremely leveraged. Fake as in the far majority of the altcoins having huge market caps due to their billions of circulating units ~ This is what I could never understand completely. If most altcoins have fake market caps (some people are saying that you can assign just any market cap to your shitcoin), then why the coins from top 20, such as BTC, ETH, BCH, LTC, XRP, DASH and XMR, constitute over 80% of the total crypto market cap, while all the others, 2,100+ alts, add up to less than 20%? I'm not trying to say, you are wrong. It's just the whole thing seems pretty strange to me. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: gentlemand on April 30, 2019, 02:42:21 PM @gentlemand. Bitfinex had no choice, however. Their banking partners of the past always relieved themselves and stopped further dealings with Bitfinex to avoid being the target of regulators. Then they should either have knuckled down and gone as legit as possible, or given up dealing with fiat altogether. Continuing down this shonky path was always going to wind up raping them and everyone touched by them, which is everyone in crypto, and it's happened yet again. Either they're deluded, autistic or plain thick. A five year old reading how Crypto Capital operate wouldn't deposit their pocket money with them. That type of amateurishness and gormless dishonesty doesn't cut it any more. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: 1Referee on April 30, 2019, 08:25:55 PM This is what I could never understand completely. If most altcoins have fake market caps (some people are saying that you can assign just any market cap to your shitcoin), then why the coins from top 20, such as BTC, ETH, BCH, LTC, XRP, DASH and XMR, constitute over 80% of the total crypto market cap, while all the others, 2,100+ alts, add up to less than 20%? I'm not trying to say, you are wrong. It's just the whole thing seems pretty strange to me. It's because of Coinmarketcap gets rid of them. You refer to +2100 alts, but there are over 10,000 in reality. 2100 is only what Coinmarketcap allows you to see. I'm not exactly sure what the name of the coin was, but one coin ended up seeing its market cap surpass $2000 billion, but with a volume of $30,000 in the last 24 hours. Coinmarketcap delisted it from their platform because of how obvious the manipulation was. Right now if you haven't got x amount of volume to justify a certain market cap, they will delist you. Projects have gotten more cautious because being delisted from Coinmarketcap very likely means the end of your project. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: figmentofmyass on April 30, 2019, 10:01:38 PM @gentlemand. Bitfinex had no choice, however. Their banking partners of the past always relieved themselves and stopped further dealings with Bitfinex to avoid being the target of regulators. Then they should either have knuckled down and gone as legit as possible, or given up dealing with fiat altogether. Continuing down this shonky path was always going to wind up raping them and everyone touched by them, which is everyone in crypto, and it's happened yet again. Either they're deluded, autistic or plain thick. i suppose giving up fiat wasn't really an option for tether. if a fiat-backed stablecoin had no fiat liquidity, that would eliminate their whole reason for existence. as for going legit, i don't think they had the capital to get properly licensed. so their legal counsel always kept them on the very edge of legality. (and i've no doubt they've engaged in fraud to keep bank transfers flowing) in that sense, i agree with those who say tether = the downfall of bitfinex. bitfinex looked like they were going full shitcoin in 2017. they were listing endless altcoin markets and for months they couldn't process fiat withdrawals to retail customers at all, so fiat holders were exiting via crypto. but tether was being printed endlessly---seemingly corporate bank wires were flowing but not retail. now we got $850m frozen already with fiat flow from bitfinex already at snail's pace. and now there's 3 billion tethers floating out there! i think we are all getting the feeling that banks/governments are clamping down on crypto exchanges and ramping up AML compliance efforts. this just seems bad all around considering how much exposure there is to tether. it feels like there's a black cloud over the market, waiting to open up on us...... Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: bbc.reporter on May 01, 2019, 12:20:05 AM @figmentofmyass. How about Goldman Sachs, which has an investment in Circle, which also owns Poloniex and has issued its own stablecoin USDC? There is also JPMorgan that will be releasing its own coin which might be another stablecoin. I reckon the 2 of them have the political influence in New York to use to attack Tether. maybe but honestly, i don't think it's a conspiracy. i think they just see the writing on the wall and plan to swoop in on tether's market share when the feds eventually take them down. it's only a matter of time. they're mixed up with drug cartels and hide everything they do behind shell companies with zero transparency. i'm not sure the NYAG can do much, but the launch of CFTC-regulated futures markets put bitfinex/tether in the sights of the CFTC and DOJ, who are investigating them as we speak. Agreed, only another business decision to kill the competition by the ruling class and the politically connected with the help of a corrupt government hehehe. I stand for Bitfinex to win this case. It will be good for the freedom of the cryptospace and Bitfinex is the lesser evil compared to JPMorgan or Goldman Sachs. I hope some people know this and do not listen to too much mainstream media. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: gentlemand on May 01, 2019, 12:57:13 AM I stand for Bitfinex to win this case. It will be good for the freedom of the cryptospace and Bitfinex is the lesser evil compared to JPMorgan or Goldman Sachs. I hope some people know this and do not listen to too much mainstream media. I would have a lot more sympathy for Bitfinex if they hadn't repeatedly lied and obfuscated wherever possible. There is nothing virtuous about them. They've been consistent assholes. Maybe that was necessary to keep going. If it were and I were running it I'd put an asshole disclaimer on the site. i suppose giving up fiat wasn't really an option for tether. if a fiat-backed stablecoin had no fiat liquidity, that would eliminate their whole reason for existence. as for going legit, i don't think they had the capital to get properly licensed. so their legal counsel always kept them on the very edge of legality. (and i've no doubt they've engaged in fraud to keep bank transfers flowing) Since Bitfinex and Tether are the same bunch they could've funded every licence in the solar system. Bitfinex have had money pouring out of their arse at various points. It would be interesting to see if they actually could make Tether fully legit. They probably concluded it either wasn't possible or suited their purposes not to be. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: bbc.reporter on May 01, 2019, 01:10:00 AM @gentlemand. I agree, however, between Bitfinex and the big banks JPMorgan and Goldman Sachs which might be the hidden executors behind this case, I choose Bitfinex to win. It would send a message that the cryptospace will not be impaired by them with all their political power and connections.
Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: gentlemand on May 01, 2019, 01:15:57 AM @gentlemand. I agree, however, between Bitfinex and the big banks JPMorgan and Goldman Sachs which might be the hidden executors behind this case, I choose Bitfinex to win. It would send a message that the cryptospace will not be impaired by them with all their political power and connections. The principle would be cool but it's utterly, utterly doomed. It would be as hopeless as Goldman Sachs attempting to sue Bitcoin. It's not their territory, they have no control and they'd certainly have no hope. Every time more detail emerges about all this some service linked to BFX turns out to be breaking a law or getting arrested. It's pitiful. So far it's mainly third parties doing this to them. They should've been a little brighter about who they do business with, or not done business at all. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: Betwrong on May 01, 2019, 08:35:26 AM ~ It's because of Coinmarketcap gets rid of them. You refer to +2100 alts, but there are over 10,000 in reality. 2100 is only what Coinmarketcap allows you to see. True, but when we are talking about the total crypto market cap, $175 billion currently, we are talking about the sum of market caps of all the coins listed on CMC, right? We don't take all those 10,000 other coins into account. Right now if you haven't got x amount of volume to justify a certain market cap, they will delist you. Projects have gotten more cautious because being delisted from Coinmarketcap very likely means the end of your project. Exactly. And that's why I think that currently we can say that market caps of coins listed on CMC are more or less correspond to reality. And, I'm sorry, but I still don't understand, how disappearance of $3 billion worth of tokens(USDT) can affect the market($175 billion) significantly? Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: gentlemand on May 01, 2019, 10:26:15 AM And, I'm sorry, but I still don't understand, how disappearance of $3 billion worth of tokens(USDT) can affect the market($175 billion) significantly? Because USDT is doubly powerful. Every time it's created it's newly injected money and it's 'actual' money, not market cap which means nothing anyway. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: figmentofmyass on May 01, 2019, 06:34:24 PM And, I'm sorry, but I still don't understand, how disappearance of $3 billion worth of tokens(USDT) can affect the market($175 billion) significantly? Because USDT is doubly powerful. Every time it's created it's newly injected money and it's 'actual' money, not market cap which means nothing anyway. yep, $3 billion being added to or subtracted from the total market cap is negligible. it's more about the fact that the crypto spot markets are so thin. pumping a billion tether dollars into these thin order books could raise the total market cap by hundreds of billions. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: 1Referee on May 01, 2019, 10:03:39 PM And, I'm sorry, but I still don't understand, how disappearance of $3 billion worth of tokens(USDT) can affect the market($175 billion) significantly? Slippage due to very thin orderbooks. If you also take into consideration that most orders in the books that we see are spoof orders, which bots pull back when the price comes to their trigger price, you need even less fiat or tether to pump the price with. In the same way, if people start selling like what happened late last year, you need the billions of circulating Tethers to provide buy support on exchanges like Bitfinex, Binance, OKEx, Huobi, etc. If there was no Tether but only actual fiat in the market, we without a doubt would have seen the price tank DEEP under the $3000 level, and perhaps even under the $2000 level. People don't want to hear or admit it, but Tether is literally propping up the market. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: bbc.reporter on May 02, 2019, 02:05:40 AM @1Referee. I assume that for you it appears that USDT is not entirely backed by real US dollars which it was before this new issue? I reckon the old issue was already explained by Kraken last year.
https://blog.kraken.com/post/1664/on-tether-journalists-defy-logic-raising-red-flags/ Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: bbc.reporter on May 14, 2019, 02:04:39 AM News update on this issue.
I shake my head. Bitfnex raised $1b from private investors depsite the United States government is after the exchange and a payment processor has $850m of their money. Who would be willing to take that risk? Do the investors know something? Also, there is a chance that the case versus Bitfinex might be settled. What a win hehehe! In the midst of legal uncertainty, Bitfinex has supposedly raised a billion dollars for their IEO token, LEO. The exchange has made no official announcement, but CTO Paolo Ardoino’s tweet has been interacting with Twitter users to explain the situation since his announcement. In an alleged private placement, the company raised money from giants in and out of the crypto industry; the minimum issue was for a million dollars and some investors made a contribution over $100 million dollars. If true, this is possibly the fastest billion-dollar capital raise in any market. The timing of this placement has been immaculate considering their internal liquidity crisis. The exchange has not made a statement regarding the arrest of Reginald Fowler from Crypto Capital, but they have announced support for Crypto Capital claiming that the authorities wrongly seized their funds. However, Bitfinex has shown immense public resilience no matter what the internal situation may be. With judge Joel M. Cohen asking Bitfinex and the NYAG to hold discussions and come to a reasonable agreement, there is a possibility that the legal proceedings against Bitfinex will disappear. This will be an incredible victory for Bitfinex but nothing is certain until both parties have met. Source https://btcmanager.com/bitfinex-cto-exchange-raised-1-billion-private-placement/?q=/bitfinex-cto-exchange-raised-1-billion-private-placement/& Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: figmentofmyass on May 14, 2019, 02:16:06 AM I shake my head. Bitfnex raised $1b from private investors depsite the United States government is after the exchange and a payment processor has $850m of their money. Who would be willing to take that risk? Do the investors know something? i thought people who bought ifinex equity after the 2016 hack were crazy too. it turned out to be quite profitable. it's not my cup of tea, but some people like to live life on the edge i guess---high risk, high reward. i think they're raising money mostly from USDT holders who i suppose have some incentive to fix the insolvency. it's a bit of a "shotgun wedding" type situation. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: bbc.reporter on May 14, 2019, 03:48:19 AM @figmentofmyass. This goes back to my argument about money launderers who might be using the cryptospace to run a global money laundering ring. Who would support Tether again for the stablecoin to continue going?
I reckon the other stablecoins might be harder to use for their purposes because they are more closely monitored. Tether appears to be immune of regulators and it has no clear auditing process. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: IconFirm on May 14, 2019, 09:11:31 AM Good, it's about time someone took Bitfinex down - totally untrustworthy exchange with a history of scammyness & dodgy dealings. Pretty sure this has nothing to do with BTC price though, they're simply not big enough to have any impact. I'm an attorney who has championed consumer class actions for years. I find the relationship between Bitfinex and Tether troublesome. Looks like you may agree. I'm evaluating whether there may be strong grounds for a class action here. If you'd like to talk confidentially about what I have in mind, feel free to call me at 330-607-2187. Thanks! - George No thanks....LMAO Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: LeGaulois on May 14, 2019, 09:53:05 AM News update on this issue. So from the $1bln raised it's only come from large investors since the minimum was $1mln. I have no idea why an investor would invest in an IEO knowing all the drama around Tether/Bitfinex. 1) Either they don't know the situation (they invested in something & somewhere but they're not aware how funds are used i.e. a funds pension, funds management or VC, idk) 2) or they do know perfectly the situation but in this case yeah I believe they're aware of something. No matter what is it, it could be something positive otherwise these investors would not have invest in. Even Millionaire, I don't have testicles big enough to spend a couple of millions on Bitfinex, I prefer to buy scratch tickets Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: figmentofmyass on May 14, 2019, 05:35:37 PM @figmentofmyass. This goes back to my argument about money launderers who might be using the cryptospace to run a global money laundering ring. Who would support Tether again for the stablecoin to continue going? people who are already exposed to tether risk worth many millions of dollars. they know they will suffer from any crisis of confidence in tether or bitfinex. they also know the token sale news provided relief to the market. if i had millions in USDT, i would have given bitfinex a soft pledge worth all my USDT too. but i wouldn't follow through on it. bitfinex is now trading persistently below the rest of the market, probably due to lack of fiat inputs (vs legit exchanges like coinbase or bitstamp). so i'd be slowly sending my USDT to bitfinex right now and buying my way out. anyway, i think there's a few different things going on: 1. there's a contingent of USDT holders who will pledge to buy into the token sale but will later renege. they are using the token sale as cover while they silently exit USDT while it's still trading near parity. 2. there's another contingent who is deeply exposed to tether risk (holding 8 figures + of USDT) who can't exit to other currencies due to lack of liquidity and are therefore now "holding the bag". they can help ensure USDT keeps trading at 1:1 by bailing out tether and reducing their exposure over time. 3. there's yet another contingent who may be speculating that the LEO token will pump a lot since it's modeled after BNB. by buying at 1:1 to USDT, they expect to profit. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: bbc.reporter on May 15, 2019, 01:21:25 AM @figmentofmyass. I speculate that it might be a combination of all 3 that has come into an agreement that it would be better for the cryptospace, and them, to support Bitfinex and profit than leaving it to die. Which I agree with.
@LeGaulois. Agreed! I reckon something only positive will come out of this if Bitfinex is saved. Title: Re: [2019-04-26] CNBC: Bitcoin price falls on NY AG Bitfinex probe Post by: bbc.reporter on May 18, 2019, 02:48:37 AM New update.
Bitfinex posted this in their blog. This is a victory according to them, however, there are other news articles that say that the injunction is still blocking Bitfnex's line of credit from Tether. But as also reported in other news articles Bitfinex has collected $1b in funding in their IEO. This will not be a problem hehehe. https://i2.wp.com/www.thenonprofittimes.com/wp-content/uploads/2018/06/Screen-Shot-2017-03-20-at-10.27.03-AM.png?fit=672%2C372&ssl=1 Today, the Hon. Joel M. Cohen of the New York Supreme Court (Commercial Division) granted our motion to modify the injunction obtained by the New York Attorney General against our business because the original injunction was vague, overbroad, and not time-limited. The court’s order allows Bitfinex and Tether to continue their normal business activities. It also stipulates that the injunction will expire in 90 days and that the burden to seek any renewal from the court rests squarely on the shoulders of the New York Attorney General’s office, where it belongs. Judge Cohen held that New York’s Martin Act “does not provide a roving mandate to regulate commercial activity.” This order is a victory in the ongoing defence of our business against the New York Attorney General’s office. The New York Attorney General’s office has sought to proceed ex parte against us and in bad faith, notwithstanding our previous, historical, and voluntary co-operation with them. We will vigorously defend against any action by the New York Attorney General’s office, and we remain committed, as ever, to protecting our customers, our business, and our community against their meritless claims. Source https://www.bitfinex.com/posts/363 |
