The Crypto Times
Image default
Exchanges Government News Stable Coin

Bitfinex Reportedly Used Tether Reserves to Hide $850 Million in Missing Cash

According to a lawsuit filed by the New York Attorney General, cryptocurrency exchange Bitfinex used over $700 million from the reserves backing Tether (USDT) to cover up $850 million in missing funds.

This highly fraudulent act caused cryptocurrency markets to crash over 5%, eliminating over $10 billion in value, affording to CoinMarketCap.com on Thursday, April 25th.

The missing $850 million was said to have gone missing through a deal between Hong Kong-based iFinex (which holds Bitfinex) and Panama-based Crypto Capital. iFinex reportedly chose Crypto Capital to process payments for customer payouts after a series of traditional banks refused to do business with them.

When it became clear that the $850 million was lost, iFinex fraudulently stole “at least” $700 million from the reserves that (supposedly) backed Tether, their own stable coin pegged against the U.S. dollar.

Related posts

Tech Giant Samsung Bolsters DApp Kit with Two Brand New Services

Viena Abdon

Canadian Crypto Exchange Coinberry Claims Bitcoin Better than Bank Cards for Paying Taxes

Viena Abdon

Reasons Behind Africa’s Delay in Cryptocurrency Adoption

Viena Abdon

Cryptos, An Entirely New Class of Financial Assets

Miles

Cryptocurrency Startup Ledger Secures $2 Million Investment From Samsung

Viena Abdon

Crypto Platform Bakkt Looks to the Future, May Apply for BitLicense

Viena Abdon