Here’s What We Know About the Bitfinex and Tether Issue

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Tether is a stablecoin, there should be a one for one deposit of a dollar for every coin issued. Never invest more than you can afford to lose.

You can read the crypto exchange's full response on the Bitfinex and Tether issue here. That position is contradicted by the attorney general's suit, which said Bitfinex attorneys "do not believe Crypto Capital's representations that the funds have been seized".

The cryptocurrency exchange Bitfinex is in hot water after it was revealed that almost $185 million in Bitcoin and Ethereum was withdrawn from the firm's cold wallets. They must also retain all documents tied to the probe, court records show. According to sources, Crypto Capital was providing service to QuadrigaX as well. New York AG Case: $850 Million Lost?

"Companies such as Crypto Capital have proven useful in the sense that they operate as a payment processor that is able to receive transfers from clients, store funds and then process outgoing transactions as well", He added that, "Crypto Capital is one such company that we have/do use". The fact of the matter is, Bitcoin rapidly recovering off this news is a likely sign that the market consists mostly of holders and accumulators, as made evident by the fact BTC's chart structure "looks strong".

The controversy surrounding the issuance of tether rose a notch higher following claims that the stablecoin did not have sufficient United States dollars reserves and a subsequent allegation that the Tether and Bitfinex could have manipulated bitcoin prices via surplus USDT tokens.

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It claimed the funds were "not lost but have been, in fact, seized and safeguarded".

As the Bitcoin price turns green by more than 1 percent, altcoins follow suit with top cryptos up by 1 to 3 percent in the past 24-hours with total market cap seeing a small upside to $172 billion. Tether's price fell over 1%, coming off its dollar peg.

The attorney general's office mentioned that "Those transactions-which also have not been disclosed to investors-treat Tether's cash reserves as Bitfinex's corporate slush fund, and are being used to hide Bitfinex's massive, undisclosed losses and inability to handle customer withdrawals". In return, Bitfinex credited $625 million to Tether's accounts with Crypto Capital.

NYAG Accusations "Filled With Inaccuracies, ' Says Bitfinex Letter to Users root 38 mins ago Google+ VKontakte Telegram Viber NYAG Accusations 'Filled With Inaccuracies" Says Bitfinex Letter to Users Cryptocurrency exchange Bitfinex stated that the recent allegations by the New York Attorney General (NYAG) about the exchange's insolvency are "filled with inaccuracies and false assertions". In effect, executives "fraudulently shifted most or all of Bitfinex's risk of loss of several hundred million dollars onto Tether's balance sheet, but continued to represent to the market that Tethers were fully "backed" by United States dollars sitting safely in a bank account".

James announced that she had obtained a court order against iFinex Inc., the Hong Kong-based parent company of both Bitfinex and Tether to prohibit it from operating outside the boundaries of NY law and defrauding the city's crypto investors.

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