Bitfinex - FRAUD, price manipulation, fake transactions

[mayax]

Another $25m fraudulent Tether fresh off the printer:


http://omnichest.info/lookupadd.aspx?address=3MbYQMMmSkC3AgWkj9FMo5LsPTW1zBTwXL

BTC price will rise again. 

The 'institution' buying the worthless Tethers, is Bitfinex themselves. Using customer funds to buy worthless Tethers from a company owned and controlled by the Bitfinex executives.

[TheQuin]

The 'institution' buying the worthless Tethers, is Bitfinex themselves. Using customer funds to buy worthless Tethers from a company owned and controlled by the Bitfinex executives.

If you read the whole paragraph it clearly explains that Bitfinex buys the Tethers with its customers USD when they want to withdraw in USDT. By definition, if customers are buying Tethers they are not worthless.

Another $25m fraudulent Tether fresh off the printer:

Obviously, there is nothing remotely fraudulent about that.

BTC price will rise again. 

Yes.

[mayax]

670 Million Tethers out of 814 million tethers on margin markets

200 million Tethers generated since Nov 17, 2017

Remember , Bitfinex/Tether lost their bank accounts since April.  

Tethers are not being printed based on people buying Tethers. Tethers are printed are not backed by USD in a bank account.

Tether is a fraud like Bitfinex. You don't need to much knowledge to see that; you just have not being blind

[TheQuin]

Remember , Bitfinex/Tether lost their bank accounts since April.  

Untrue. Tether's banks stopped accepting international wire transfers due to a wider banking issue in Taiwan that also affected other companies there. Those that could use intermediary banks were still able to deposit and withdraw. Bitfinex has recently reopened its USD withdrawal and deposits as well as adding EUR.

Tethers are not being printed based on people buying Tethers. Tethers are printed are not backed by USD in a bank account.

This is complete speculation not based on any fact and as you well know the existence of the USD backing Tethers has recently been verified by a reputable New York accountancy firm.

Tether is a fraud like Bitfinex. You don't need to much knowledge to see that; you just have not being blind

You have to willfully misrepresent the facts to make a case for that. Anyone would need to be blind not see that your case is only made by leaving out part of the information.

[gentlemand]

https://twitter.com/MrChrisEllis/status/936686197593853952

Bloomberg will be running a feature on someone who tried and failed to get real USD out of Tether. I assume he wasn't one of their 'institutional investors'.

Interesting to see how BFX will respond. They're using the old KYC chestnut.

[mayax]

https://twitter.com/MrChrisEllis/status/936686197593853952

Bloomberg will be running a feature on someone who tried and failed to get real USD out of Tether. I assume he wasn't one of their 'institutional investors'.

Interesting to see how BFX will respond. They're using the old KYC chestnut.

it is very strange that KYC procedure is made by an illegal company without any financial license.

KYC/AML procedures must be made by a KYC officer according to the gov. authority who give you the license.  How can you trust your ID and other docs to shit like Bitfinex or other illegal exchangers?

Bitfinex is out of law even in BVI where they are registered. BVI requires a financial license for the services that Bitfinex is doing.

[Quickseller]

https://twitter.com/MrChrisEllis/status/936686197593853952

Bloomberg will be running a feature on someone who tried and failed to get real USD out of Tether. I assume he wasn't one of their 'institutional investors'.

Interesting to see how BFX will respond. They're using the old KYC chestnut.

Bitfinex is usually the entity purchasing USDT from tether, in response to customer withdrawal requests of USDT, who generally send those USDT to other exchanges.


There is fairly clearly a smear campaign against bitfinex that has been going on for a long time now. It would not be crazy to suggest that whoever is behind the smear campaign bought up $1,000,000 worth of USDT with the intention of trying to redeem them without giving up KYC documentation.

[Samarkand]

...

Untrue. Tether's banks stopped accepting international wire transfers due to a wider banking issue in Taiwan that also affected other companies there...

If this was the case, you should be easily able to name 3 companies that were affected by the banking issues in Taiwan aside from Bitfinex and Tether.
I´m waiting for your reply.

...Bitfinex is usually the entity purchasing USDT from tether, in response to customer withdrawal requests of USDT, who generally send those USDT to other exchanges.
...

Irrespective of the verisimilitude of this statement, this is pretty alarming. After all many people have claimed for months that institutional investors are buying
all these Tether and they are the ones, who are easily able to wire money in and out of Tether. Now we see that the entity that purchases all the USDT is actually
Bitfinex itself and not the institutional investors that people were ecstatic about.

This is a huge red flag and doesn´t alleviate my doubts about the whole Tether situation at all.

[Quickseller]

...Bitfinex is usually the entity purchasing USDT from tether, in response to customer withdrawal requests of USDT, who generally send those USDT to other exchanges.
...

Irrespective of the verisimilitude of this statement, this is pretty alarming. After all many people have claimed for months that institutional investors are buying
all these Tether and they are the ones, who are easily able to wire money in and out of Tether. Now we see that the entity that purchases all the USDT is actually
Bitfinex itself and not the institutional investors that people were ecstatic about.

This is a huge red flag and doesn´t alleviate my doubts about the whole Tether situation at all.

Institutional customers wire USD to bitfinex, either those same, or other customers subsequently attempt to withdraw USDT from bitfinex, then bitfinex will 'top off' their hot wallet of USDT by transferring USD from bitfinex's bank account to tether's bank account in exchange for USDT being sent to bitfinex, and bitfinex processing those USDT withdrawal request.

This is not complicated. Nor is it different from what a bank will do when a customer wants to withdraw (very) large amounts of physical cash from their bank account.

[mayax]

...Bitfinex is usually the entity purchasing USDT from tether, in response to customer withdrawal requests of USDT, who generally send those USDT to other exchanges.
...

Irrespective of the verisimilitude of this statement, this is pretty alarming. After all many people have claimed for months that institutional investors are buying
all these Tether and they are the ones, who are easily able to wire money in and out of Tether. Now we see that the entity that purchases all the USDT is actually
Bitfinex itself and not the institutional investors that people were ecstatic about.

This is a huge red flag and doesn´t alleviate my doubts about the whole Tether situation at all.

Institutional customers wire USD to bitfinex, either those same, or other customers subsequently attempt to withdraw USDT from bitfinex, then bitfinex will 'top off' their hot wallet of USDT by transferring USD from bitfinex's bank account to tether's bank account in exchange for USDT being sent to bitfinex, and bitfinex processing those USDT withdrawal request.

This is not complicated. Nor is it different from what a bank will do when a customer wants to withdraw (very) large amounts of physical cash from their bank account.

as I said for many times, the 'institution' buying the worthless Tethers, is Bitfinex themselves.

Institutional investors will NEVER use an unaudited unaccountable company, unlicensed company, a company without an official bank account in the last 7 months and  3 times hacked. Let's not forget that Bitfinex is banned by the US banks. Now, they are using shell companies in order to open new bank accounts.

[illyiller]

https://twitter.com/MrChrisEllis/status/936686197593853952

Bloomberg will be running a feature on someone who tried and failed to get real USD out of Tether. I assume he wasn't one of their 'institutional investors'.

Interesting to see how BFX will respond. They're using the old KYC chestnut.

I'm not sure how I feel about this. As shady as Tether is, I wasn't quite ready to see the Tether FUD aired on Bloomberg. And presumably this story will be picked up by other mainstream outlets as well, because the media loves Bitcoin FUD!

I guess this is why they hired Torossian for that PR offensive. They are running out of excuses for their inability to redeem USDT, and it seems like they can smell the PR shitstorm coming.

I wonder what it'll do to the price. We have to consider Tether's position in the larger ecosystem. If USDT holders start panicking, that could mean a rush out of USDT and into cryptocurrencies. One would assume this kind of FUD would drive prices down, but I'm not so sure...

[Quickseller]

They are running out of excuses for their inability to redeem USDT,

The fact that USDT almost always trades very close to $1 disagrees with this assertion.

[mayax]

They are running out of excuses for their inability to redeem USDT,

The fact that USDT almost always trades very close to $1 disagrees with this assertion.

Sure, because hundreds of millions of fake USDT were pumped until now.

...or maybe a smart institutional investor sent its money to the Bitfinex black hole banks to buy tethers to buy bitcoin.  

[Lipe490]

I know that exchanges aren't fully honest and most of them do this kind of stuff. Take Yobit by example, I am tired of that shit listing shit coins with no blockchain and using fake volumes. And also people use bots to make the sam damn thing, manipulation. This won't stop and all we can do is use the trusteable exchanges only.

[romani245]

They are running out of excuses for their inability to redeem USDT,

The fact that USDT almost always trades very close to $1 disagrees with this assertion.

Can regular customers redeem Tether, though? I remember seeing reports that no one could redeem any as of months ago. Maybe it's true that "only large corporate customers" can, but no one can confirm that anyone can at all. No funds have come forward and said they use Tether.

I tend to distrust companies unless proven otherwise.

There are other market factors at play, like lack of market information re: fundamentals, need for short term USD rails that outweigh third party risk, etc.

[mayax]

They are running out of excuses for their inability to redeem USDT,

The fact that USDT almost always trades very close to $1 disagrees with this assertion.

Can regular customers redeem Tether, though? I remember seeing reports that no one could redeem any as of months ago. Maybe it's true that "only large corporate customers" can, but no one can confirm that anyone can at all. No funds have come forward and said they use Tether.

I tend to distrust companies unless proven otherwise.

There are other market factors at play, like lack of market information re: fundamentals, need for short term USD rails that outweigh third party risk, etc.

what large corporate customers would use a company like Bitfinex? Let's get real. These are only inventions. There are no large corporate clients

the only "large corporate customer" for Tether is Bitfinex itself.

[TheQuin]

the only "large corporate customer" for Tether is Bitfinex itself.

As has been pointed out to you already Bitfinex's customers' buyer Tethers is not even remotely suspicious.

If this was the case, you should be easily able to name 3 companies that were affected by the banking issues in Taiwan aside from Bitfinex and Tether.
I´m waiting for your reply.

I'll give you one, Okex. It was the case that it was a Taiwanese crack down on banks requiring higher levels of AML and KYC for cryptocurrency exchanges and not a problem specific to Tether.

it is very strange that KYC procedure is made by an illegal company without any financial license.

It would be, but as Tether is not an "illegal company" it is perfectly normal that when someone makes a withdrawal request for $1m that they would need to satisfy KYC and AML so that Tether did not put itself in the position of getting prosecuted for money laundering.

Bitfinex is out of law even in BVI where they are registered. BVI requires a financial license for the services that Bitfinex is doing.

If that was true why has the British Virgin Islands Financial Services Commission not shut them down?

As ever you are misinformed. iFinex Limited the parent holding company is registered in BVI. Bitfinex is registered in Hong Kong and holds the relevant MSO license it needs to trade from there.

[mayax]

the only "large corporate customer" for Tether is Bitfinex itself.

As has been pointed out to you already Bitfinex's customers' buyer Tethers is not even remotely suspicious.

If this was the case, you should be easily able to name 3 companies that were affected by the banking issues in Taiwan aside from Bitfinex and Tether.
I´m waiting for your reply.

I'll give you one, Okex. It was the case that it was a Taiwanese crack down on banks requiring higher levels of AML and KYC for cryptocurrency exchanges and not a problem specific to Tether.

it is very strange that KYC procedure is made by an illegal company without any financial license.

It would be, but as Tether is not an "illegal company" it is perfectly normal that when someone makes a withdrawal request for $1m that they would need to satisfy KYC and AML so that Tether did not put itself in the position of getting prosecuted for money laundering.

Bitfinex is out of law even in BVI where they are registered. BVI requires a financial license for the services that Bitfinex is doing.

If that was true why has the British Virgin Islands Financial Services Commission not shut them down?

As ever you are misinformed. iFinex Limited the parent holding company is registered in BVI. Bitfinex is registered in Hong Kong and holds the relevant MSO license it needs to trade from there.

Bitfinex is registered in Hong Kong and holds the relevant MSO license it needs to trade from there.  

Please provide an evidence for that.  Bitfinex doesn't have ANY financial license anywhere so they cannot request any KYC documents. Any financial license company MUST have a real office with staff and everything the law requires. Also, all the financial license companies must show their license number on their website ; look to websites like Coinbase, Bitstamp, Gemini and to any other licensed forex company.

Bitfinex doesn't have any physical office. The so called office from HK belongs to a lawyer who registered their company.

[TheQuin]

Bitfinex is registered in Hong Kong and holds the relevant MSO license it needs to trade from there.  

Please provide an evidence for that.  Bitfinex doesn't have ANY financial license anywhere so they cannot request any KYC documents. Any financial license company MUST have a real office with staff and everything the law requires. Also, all the financial license companies must show their license number on their website ; look to websites like Coinbase, Bitstamp, Gemini and to any other licensed forex company.

Bitfinex doesn't have any physical office. The so called office from HK belongs to a lawyer who registered their company.

https://www.reddit.com/r/BitcoinMarkets/comments/2dohjg/im_josh_rossi_from_bitfinex_here_to_talk_about/cjtxire/

We do currently have a Money Services Operator license in Hong Kong, which does come with a lot of oversight and obligations. We are required to maintain an office, and staff compliance officers, submit identification documents for our higher level employees, along with being available for inspections. So, while no body has stepped forth to lay out the rules under which all bitcoin exchanges must comply, we feel that we have done the best we can given the uncertainty of the regulatory atmosphere by emulating best practices in similar industries and complying with local regulation wherever necessary.

https://www.reddit.com/r/BitcoinMarkets/comments/2dqyng/who_is_bitfinexs_banking_partner/

Bitfinex operates under a Hong Kong corporation, Renrenbee Limited (holder of the MSO license), which is wholly owned by a BVI corporation, iFinex Ltd. (our holding company).

https://hkdir.co/co/renrenbee-limited

[mayax]

Bitfinex is registered in Hong Kong and holds the relevant MSO license it needs to trade from there.  

Please provide an evidence for that.  Bitfinex doesn't have ANY financial license anywhere so they cannot request any KYC documents. Any financial license company MUST have a real office with staff and everything the law requires. Also, all the financial license companies must show their license number on their website ; look to websites like Coinbase, Bitstamp, Gemini and to any other licensed forex company.

Bitfinex doesn't have any physical office. The so called office from HK belongs to a lawyer who registered their company.

https://www.reddit.com/r/BitcoinMarkets/comments/2dohjg/im_josh_rossi_from_bitfinex_here_to_talk_about/cjtxire/

We do currently have a Money Services Operator license in Hong Kong, which does come with a lot of oversight and obligations. We are required to maintain an office, and staff compliance officers, submit identification documents for our higher level employees, along with being available for inspections. So, while no body has stepped forth to lay out the rules under which all bitcoin exchanges must comply, we feel that we have done the best we can given the uncertainty of the regulatory atmosphere by emulating best practices in similar industries and complying with local regulation wherever necessary.

https://www.reddit.com/r/BitcoinMarkets/comments/2dqyng/who_is_bitfinexs_banking_partner/

Bitfinex operates under a Hong Kong corporation, Renrenbee Limited (holder of the MSO license), which is wholly owned by a BVI corporation, iFinex Ltd. (our holding company).

https://hkdir.co/co/renrenbee-limited

You show me as evidence some forums. I am not a sheep, mate.   LOL

Please provide me a place on Bitfinex website where it's referring to this license.


https://www.bitfinex.com/legal/terms

Governing Law: These Terms of Service shall be governed by and construed and enforced in accordance with the laws of the British Virgin Islands, and shall be interpreted in all respects as a British Virgin Islands contract. Any claim or action arising from or related to these Terms of Service shall be governed by and construed and enforced in accordance with the laws of the British Virgin Islands

Where do you see HK, where do you see any financial license number?  Remember, a license is NOT a secret and it must be publish on their website IF exists  

I can make a website and saying on forums that I am bank. Am I a bank?