wry Posted April 25, 2019 #1 Posted April 25, 2019 Not sure how much this will matter since we don't use Tether on Stake, but Bitfinex is a major exchange and the BTC price drop followed in the wake of this news. In the United States, the New York Attorney General's office announced that Bitfinex lost $850 million USD and covered those losses with Tether, the stable coin that they largely control. From the news story: Quote According to the statement, Bitfinex sent $850 million of customer and corporate funds to Crypto Capital Corp., a payment processor that is said to be holding funds from other exchanges as well, such as QuadrigaCX. Funds from Tether’s reserve were used to make up the shortfall, but neither the loss nor Tether’s fund movements were disclosed to customers. So basically they sent funds to another company that promptly lost them and then covered up their losses by using the money they were holding to secure Tether. Interestingly, a lot of details about what Crypto Capital did with the money are not made clear. Anyway, hope this does not effect any of you directly, it is yet another black eye for the crypto community. Link: https://www.coindesk.com/bitfinex-ny-prosecutors-tether-850-million-allege
Jesselfaye1 Posted April 25, 2019 #2 Posted April 25, 2019 OMG! That's a big money. Hope Bitfinex will recover. Good luck Bitfinex.
KinAniK Posted April 25, 2019 #3 Posted April 25, 2019 Because of this news btc went down by more than $1000 on Kraken, also tether/usd price also dropped there a lot
cryptjh Posted April 25, 2019 #4 Posted April 25, 2019 17 minutes ago, Jesselfaye1 said: OMG! That's a big money. Hope Bitfinex will recover. Good luck Bitfinex. Really, I hope they will close down, or at least be an exchange people will stop using, just printing Tether to pay your bills sounds like a Fiat system everyone wants to get away from.
Jesselfaye1 Posted April 25, 2019 #5 Posted April 25, 2019 It's a big money. Better if they give it to feedthechildren.org (Philippines). Good luck to them!
williamshennie9 Posted April 26, 2019 #7 Posted April 26, 2019 Woah, $850 million is a lot! Luckily the price decrease wasn't thousands of dollar in bitcoin, just about $200 to $300, which is manageable. I hope this situation gets sorted out so the price can start increasing again.
nhoyasim101 Posted April 26, 2019 #8 Posted April 26, 2019 ahmm so this is the reason why a sudden BTC collapse from $5500+ to $4950 yesterday, hope that btc can stand for this kind of mess
kangarostaples Posted April 26, 2019 #9 Posted April 26, 2019 How is it even possible to simply lost $850 million USD. They cant just disappear.
Kate Posted April 28, 2019 #10 Posted April 28, 2019 Wow how could they not confirm like twice or thrice before sending the money ? Like why ? Due to this Bitcoin has also dropped and also Tether has dropped sorry to see this happened.
Eben Posted April 28, 2019 #11 Posted April 28, 2019 Subsequently, an arrangement was struck to create a $900 million line of credit, with a three-year term and an interest rate of 6.5 percent, wow 🙁
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