Bitfinex and Tether litigation: what is known?
Unfortunately, large digital companies are often involved in litigation. It is all the fault of the attention of millions of users, not all of whom are interested in quiet work. Individual users of the crypto industry seek to spoil the reputation of large companies, and therefore begin legal proceedings against well-known enterprises. The digital exchange Bitfinex found itself in a similar situation, on which, according to worried plaintiffs, a criminal case was opened about the concealment of millions of dollars. The trial has been going on for a long time, so that we can confidently talk about the seriousness of this conflict. And serious events should be analyzed in detail. This is what we will do. So let’s get started.
In fact, the proceedings began in the summer of 2019 and continues to this day. Then the New York prosecutor’s office became interested in the incomprehensible nature of several transactions on Bitfinex. As a reminder, this is one of the leading cryptocurrency platforms and the undisputed favorite in the US market. Nevertheless, the law enforcement officers brought rather serious charges. According to the New York prosecutor’s office, the exchange either stole or unsuccessfully invested $ 850 million received from investors. The funds allegedly simply disappeared from tax returns. But, based on the words of prosecutors, the exchange tried to compensate for the lost funds using Tether’s money. By the way, Tether is also accused of participating in this criminal scheme. However, there is still no specifics.
Representatives of the law demanded to provide an extended description of all transactions that were carried out on the exchange. At the moment, companies are preparing the relevant documentation. According to the latest information, Tether and Bitfinex have asked for additional time to process the request. After all, they have to transfer about 2.5 million pages of documentation. This is a report on every transfer included in that same $ 850 million. Let’s look at the parties to the conflict and try to figure out how this confrontation will end?
A sane view of Bitfinex in the current situation
In fact, it is quite difficult to speak unequivocally in such matters. Nevertheless, we are confident that one of the largest monopolists in the American digital market will not spoil its reputation in such schemes. The exchange’s defenders believe that the platform has fallen victim to the aggressive policies of Donald Trump, who, as you recall, has repeatedly harassed the crypto industry. Guided by a single counter-terrorism argument, the former president and his subordinates have repeatedly taken action against Blockchain and related companies. Thus, it is entirely possible that the current conflict with Bitfinex is one such provocation. This fact confirms the sharp denial of the accusations by the companies, as well as the willingness of the accused to provide all the requested information. Agree, 2.5 million pages of financial documents is more than a detailed answer to the charges.
But what if Bitfinex actually stole nearly a billion dollars? Of course, this is a colossal blow to the company’s reputation. If the company’s guilt is proven and judgments are made, the company’s authority can simply be forgotten. However, it is a matter of time. Proceedings are underway, the firm will have to defend its own rights, and state representatives will have to confirm their competence. We will follow the development of events. So stay tuned for the latest news on the crypto industry. We publish only high-quality and interesting material. Thanks for attention. Good luck!