TL;DR: “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,” embattled cryptocurrency exchange Bitfinex responded 26 April 2019.
Bitfinex Responds to NY AG Allegations
“Earlier today,” the exchange continued, “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.”
Speculative crypto markets were rocked, sending nearly every indexed coin into red, some deeply. At press time, however, most had recovered enough to settle some nerves when many in the ecosystem were predicting a full-on run and dump. That appears to not have happened. Bitfinex has been under a cloud for years, however, be it through notorious hacks and record user losses or its affiliation with popular stablecoin Tether (USDT). As a result, still others assume prices are already baked-in, as it were, for an event of just this sort. The lawsuit itself alleges commingling of user money and USDT distribution by the exchange to such a degree as to cause missing or lost funds.
Regarding those alleged losses, “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,” the exchange insisted.
CoinSpice also determined addresses laying dormant since 2016 had been moved the exact same day, 25 April 2019, the Attorney General made her suit public — at the very least a wild coincidence, if not directly related to the issues of concern as cited by the state of New York.
Nevertheless, the exchange maintains “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,” stressing how “Both Bitfinex and Tether are financially strong – full stop.”
Further characterizing the AG’s actions as a “gross overreach,” Bitfinex described its company culture as both “good corporate citizens and strong supporters of law enforcement.” They are vowing to “vigorously challenge this, and any and all other actions, by the New York Attorney General’s office.”
DISCLOSURE: The author holds cryptocurrency as part of his financial portfolio, including BCH.
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