22 months The General Prosecutor's Office of the State of New York (NYAG) conducted an investigation into the lack of provision of Tether Fitate currency and the use of the release of coins to cover the bitfinex financial losses. Although Tether and Bitfinex are IFINEX subsidiaries, the root of problems is associated with a third-party company Crypto Capital.
Tether - STABKOIN, tied in a 1: 1 ratio to the US dollar. To ensure the stability of the system in the company's bank accounts, the same volumes of the fate currency must be located as the tokens on cryptoci. In 2018, the regulator expressed doubt about Tether US dollars, and the prosecutor's verification provoked a loan to Bitfinex in a volume of $ 850 million. It was suggested that the necessary coins were simply prepress. Tether and Bitfinex communications never advertised, but the first listing of Tocken held it BitFinex, and the subsequent crisis with Crypto Capital revealed a direct connection between two cryptocompany.
With the increasing revolutions of the cryptobier, the Bitfinex took a major and reliable financial operator, but in 2017 the WELLS Fargo Bank (NYSE: WFC) refused to cooperate with it. Then the guide turned to Crypto Capital, based in Panama. Due to the complexity of working with recognized financial institutions at one time, Binance, Kraken and Exmo worked with Crypto Capital. But it was Bitfinex that turned out to be a hostage when in 2018, Crypto Capital was accused of fraud and laundering drug trarars, and its accounts were arrested in Poland, USA and Portugal.
Since Crypto Capital was the main payment aggregator for Bitfinex, $ 850 million cryptobyri was reserved on his accounts. The arrest of accounts caused a sharp deficit of liquidity, and the fate of Bitfinex was threatened. To avoid the risk of bankruptcy, Bitfinex took the missing funds from Tether, but did it secretly, which caused a new wave of accusations. Due to the interference of the regulator, financial relations had to consolidate documented. Subsequently, BitFinex was calculated with Tether, spending ICO with the release of the LEO token: in 10 days the exchange collected $ 1 billion. However, the investigation was already running.
22 months, the prosecutor's office led the investigation, over 2.5 million documents were requested. The verdict of the regulator: With Tether and Bitfinex, all charges are removed, as part of the settlement of the company must pay $ 18.5 million and provide quarterly reports on the degree of provision of tokens by US dollars over the past two years. So far, the investigation went, Bitfinex has changed its wording by adding cryptoacivals and income from lending to "providing dollar reserves.
After the release of Bitcoin, Bitcoin cut off the February correction by 10% in the last 12 hours.
The importance of this news is difficult to overestimate, since the overwhelming majority of cryptocurrency exchanges are calculated in Tether, and its capitalization has increased from $ 1 billion in 2016 to current $ 35 billion. Refusal of claims from the regulator will affect the entire cryptocurrency market. However, the question of the degree of provision of TETHER has not yet been delivered.
Analytical group Stormgain.
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