Applications Blockchain Cryptocurrency Exchanges Exchanges Market Tech

Two Bitfinex Shareholders: Not Concerned by Allegations Against The Exchange and Tether

April 27, 2019
Avatar

author:

Two Bitfinex Shareholders: Not Concerned by Allegations Against The Exchange and Tether

Two shareholders of leading Hong Kong-based cryptocurrency Bitfinex said they are not concerned with the allegations made by the United States Attorney General in New York about the exchange’s potential insolvency. This news comes via a report by crypto news outlet Coindesk on April 26th.

Last January, Zhao Dong, a Bitfinex shareholder, stated on Weibo, a microblogging platform, that the balance of Bitfinex and Tether (USDT) totalled more than $3 billion, which is more than the current USDT circulating supply.

These balances were apparently shown to Dong by Bitfinex and Tether chief financial officer (CFO) Giancarlo Devasini. After seeing the reports, Dong wrote:






“This debunks all rumors around USDT.”

Regarding the recent allegations against Bitfinex, the Coindesk article states that Devasini told Dong that Bitfinex “need[s] a few weeks and the funds will be unfrozen.” The report goes on to claim that Dong specified that the funds were held in various banks in Poland, Portugal, and the United States. Another shareholder, Tan Jia, reportedly told Coindesk that he still supports the exchange in spite of its current issues.

As Cryptos reported yesterday, Bitfinex recently withdrew $90 million worth of crypto from its cold wallets, but did not give a reason for the move. The company also released a statement, along with its sister company, Tether, denying any wrongdoing and characterized New York Attorney General Letitia James’ allegations “riddled with false assertions.”

Last January, critics of Tether suggested that it was not backed 1:1 by U.S. dollars, as it claims to be, and would indeed to be in order for it to be a true stablecoin. Instead, its opponents said, it was operating a fractional reserve. Tether also denied these accusations and, last June, released an unofficial audit that showed that Tether was fully backed by U.S. dollars.