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The BitFinex & Tether Case: Judge Cohen Needs More Time For Investigation

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The New York Attorney General’s office has been going after Tether and Bitfinex since April and today, the 29th of July, was the date for the next case hearing. With the opinion of the community going both ways, the Supreme Court Judge Joel Cohen decided to extend the preliminary injunction as he was not ready with his decision.

90 Days Extension

The defense claimed again that New York-based customers are no longer allowed and claimed that such a customer was identified and removed last week. A new date will be set since the court’s consideration is being extended for another 90 days even though the presenting Judge Cohen said previously that he hoped the case will be resolved today. 

Because of this decision, Tether cannot lend any more funds to BitFinex as of now, but both will continue operating business as usual.

The $850 Million Case

BitFinex and Tether have a parent company called iFinex and the New York Attorney General’s office opened a case against the company in April for covering $850 million worth of USDT. 

BitFinex responded quickly by claiming that the order was “written in bad faith”. The parent company argued that NYAG does not have jurisdiction over the case since they are not serving New York customers any longer. 

New evidence came to light shortly after as CryptoPotato reported. It suggested that the “largest stakeholders” of both Tether and BitFinex resided and worked in New York in the period between 2014 and 2018. New York customers could redeem USDT until November 2017, the two companies have opened 2 banks in 2017 and 2018 and they have loaned USDT to New York trading firm.

Bitfinex

Bitfinex to file a motion to dismiss $1.4 trillion worth class action law suit

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  • Bitfinex denies the accusations and fines a motion.
  • The exchange explained its position in this case in a recent blog post.

The cryptocurrency exchange Bitfinex intends to file a motion to the Southern District of New York to dismiss the “frivolous class-action lawsuit” to the tune of $1.4 trillion.

Last month, a group of investors filed a class-action lawsuit against iFinex Inc., its subsidiaries and top managers, accusing them of violating the U.S. Commodity Exchange Act, the RICO Act, money laundering, Pump & Dump schemes, market manipulation through the issuance of USDT and deliberate fraud of investors.

Bitfinex believes the allegations are unfounded and insufficient “even for the earliest stage of the trial.” Representatives of the exchange emphasized that a significant part of the arguments is based on a recent study by professors John Griffin and Amin Shams. According to the document, a major player at Bitfinex allegedly could control the price of bitcoin in 2017 and the rally was the result of market manipulations.

The company is convinced that the study contains “methodological flaws”, and the statement that only one whale could cause a rapid rally of bitcoin is “ridiculous”.

Read also: Bitfinex denies money laundering and claims to be a victim of fraud

The complaint also ignores an array of other factors that contributed to the spike in the price of bitcoin in 2017. Furthermore, the complaint claims, without evidence and in defiance of reason, that somehow Tether manipulated a market more than seven hundred times the size of total Tether USDT issuances in circulation between March and December of 2017, something that any sophisticated and rational observer of the digital token ecosystem knows to be ridiculous”.

Finally, Bitfinex stressed that it intends to zealously defend the interests of the company, its users, stakeholders and the cryptocurrency community.

Notably, the founder of Crypto Capital, Oz Yosef, who is involved in the Bitfinex bitcoin exchange case against the state of New York, was charged with bank fraud at the end of October.

Shortly before this, Bitfinex issued a statement according to which the exchange not only did not help Crypto Capital with money laundering but also became a victim of fraud.
 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

source:fxstreet

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Bifinex is readying the launch of options and gold-backed Tether for early 2020

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  • Cryptocurrency exchange Bitfinex set to launch options and gold-backed Tether.
  • CTO Paulo Ardoino was detailed that the plans are for Q1 2020 for the new products. 

The Chief Technology of Bitfinex cryptocurrency exchange, recently revealed that the firm’s ambitious plans for 2020. They include a debut within the options offering, in addition to gold-backed Tether. In

CTO Paulo Ardoino was speaking in a podcast with the BlockCryto, he covered ground on much of the issues ranging from the allegations of market manipulations, to then provide some details on upcoming products that Bitfinex plans to offer including options and a gold-backed stablecoin. 

Ardano said:

So our goal is to launch options in Q1 2020. We are working, so in order to trade futures on Bitfinex, you have to be verified. And we are excluding, of course, also certain jurisdictions like Canada and few others, because we believe that we want to be really protective of our users. 

He added:

Tether gold. I think that what excites me is to seed or give the ability of letting people to to use tether gold and having a sort of comparison between physical gold and digital gold that is bitcoin.  Of course, we’ll be fully gold-backed. We are working the system to be sure that every single you know, every single tether gold is linked to a specific gold bar

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

source:fxstreet

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Bitfinex allows withdrawing bitcoins to SegWit addresses

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  • The cryptocurrency exchange now supports bech32 addresses.
  • The platform also added new charting tools for derivative trading.

Cryptocurrency exchange Bitfinex added support for bitcoin withdrawals to bech32 addresses. This is a native Segwit address format that consists only of lowercase letters and offers greater protection against typing errors as it is not case-sensitive.

“Bitfinex has been supporting Bitcoin withdrawals on Pay To Script Hash (P2SH) wrapped addresses. This address format starts with the number 3. As bech32 addresses only exist on the Bitcoin network, our new support for Bitcoin withdrawals to bech32 addresses removes the possibility of our clients experiencing any cross-chain mix-ups,” the company explained.

This format is also supported by Gemini and Kraken, while in October, the head of Binance Changpeng Zhao also hinted on the possibility of SegWit support.

Notably, in September 2019, SegWit support surpassed 50% threshold, which means that over half of all transactions are processed by this protocol.  In October the SegWit adoption peaked at 57.2%; however, by the time of writing, the figure has retreated to 52.94, according to Transactionfee data.

Separately, Bitfinex added new charting tolls for derivative instruments to provide the customers with insights and historical data on liquidation fund balance. funding rate, spread and open interest.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Source .fxstreet

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