Category: Bitfinex

Bitfinex Scoffs at Tether Market Manipulation Lawsuit: Bittrex and Poloniex File for Summary Judgment

Bitfinex Scoffs at Tether Market Manipulation Lawsuit: Bittrex and Poloniex File for Summary JudgmentBitfinex says the second attempt by plaintiffs to frame the bitcoin manipulation complaint will fail just like the first attempt. The Bitfinex comments follow a notice by Bittrex and Poloniex disputing claims that they knew about the alleged market manipulation by Bitfinex. In June, the plaintiffs namely, Matthew Script, Benjamin Leibowitz, Jason Leibowitz, Aaron Leibowitz […]

The post Bitfinex Scoffs at Tether Market Manipulation Lawsuit: Bittrex and Poloniex File for Summary Judgment appeared first on Bitcoin News.

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Tether Prints $300 Million, While XRP Reclaims Third Spot

Tether Prints $300 Million, While XRP Reclaims Third SpotTether Ltd printed a total of USDT 300 million Wednesday and this brought the total coins created to 540 million in the last three days alone. The latest USDT printing will see the top stablecoin’s market capitalization significantly passing the $10 billion mark. Responding to a whale alert twitter post, however, Paolo Ardoino the CTO […]

The post Tether Prints $300 Million, While XRP Reclaims Third Spot appeared first on Bitcoin News.

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Hackers Transfer $28 Million Worth of Bitcoin from 2016 Bitfinex Breach

Hackers Transfer $28 Million Worth of Bitcoin from 2016 Bitfinex BreachAround 2,500 stolen bitcoins ($28 million) from the 2016 Bitfinex breach were transferred from the hacker’s wallet on Monday. The last time the Bitfinex hackers moved funds from the hack four years ago, they moved around $5 million worth of coins on June 24. This time around, the top crypto asset by market capitalization touched […]

The post Hackers Transfer $28 Million Worth of Bitcoin from 2016 Bitfinex Breach appeared first on Bitcoin News.

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Bitfinex Must Face New York’s Accusations Over the Loss of $850M in Co-Mingled Funds

Bitfinex Must Face New York's Accusations Over the Loss of $850M in Co-Mingled FundsThe popular digital currency trading platform, Bitfinex must deal with the New York Office of the Attorney General (NYAG) over the alleged hiding of over $800 million in client and corporate funds. The NY state Supreme Court’s Appellate Division overruled an appeal on Thursday, after the company put forth the argument that tether (USDT) was […]

The post Bitfinex Must Face New York’s Accusations Over the Loss of $850M in Co-Mingled Funds appeared first on Bitcoin News.

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Bitfinex Hackers Move Another $4.1 Million Bitcoin in Their Biggest Pay Day Yet

Bitfinex Hackers Move Another $4.1 Million Bitcoin in Their Biggest Pay Day YetCyber-thieves from the Bitfinex hack of four years ago continue to cash out, this time transferring the equivalent of $4.1 million in bitcoin to an unknown wallet address. Crypto tracking tool Whale Alert reports that hackers moved 416 bitcoin (BTC) on June 11. The funds, valued at $4.1 million at the time of the transaction, […]

The post Bitfinex Hackers Move Another $4.1 Million Bitcoin in Their Biggest Pay Day Yet appeared first on Bitcoin News.

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Poloniex, Bittrex Named in Lawsuit Involving the Alleged Tether-Fueled Crypto Pump

Poloniex, Bittrex Named in Lawsuit Involving the Alleged Tether-Fueled Crypto PumpOn April 3, the cryptocurrency community learned about 11 class-action lawsuits against various executives and digital asset companies. The law firm that filed the lawsuits is also involved with a class-action against Tether and Bitfinex for allegedly manipulating the price of bitcoin. On June 4, the plaintiffs and the litigation firm, Roche Cyrulnik Freedman added […]

The post Poloniex, Bittrex Named in Lawsuit Involving the Alleged Tether-Fueled Crypto Pump appeared first on Bitcoin News.

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Law Decoded: Of Street Marches and Market Manipulators, May 30–June 5

As protests rage throughout the United States, this week’s biggest moves in crypto law were behind the scenes.

Cointelegraph’s weekly newsletter on the latest in law, policy and regulation for the crypto and fintech industry. 

Editor’s note

A lockdown spring is giving way to a protest summer in the U.S., and this will be an especially U.S.-focused edition of Law Decoded. Washington’s focus has shifted from the novel coronavirus over to the mass demonstrations around the country as well as near the White House. The world watches the combined police and military response that has met the protests. 

Policymakers are still working to clean up the mess that COVID-19 has made, with the House only recently returning to session. Factoring in the fresh and massive demand for more work against racism and police brutality, new legislation on fintech is not at the top of the agenda. While some tone-deaf crypto die-hards may disagree, this is not a problem for Bitcoin to solve. 

Nonetheless, as police surveillance in the U.S. becomes more blatant, many activists are showing greater interest in encryption and decentralization, especially for messaging platforms. Black Lives Matter moved over to Telegram. The week has also seen critical developments for crypto outside of the main headlines, mostly in courts and at regulatory agencies.

Meet the new boss

Brian Brooks took over at the Office of the Comptroller of the Currency, the Treasury office that handles banks. As Brooks joined the OCC from Coinbase’s legal team at the end of March, there was speculation that his appointment was part of a bridge between banks and crypto technology. The increased interest in fintech at large during the COVID-19 lockdowns that had just begun reinforced that impression.

In Brooks’ first week at the OCC, the office issued daily announcements establishing priorities. Indeed, Chairwoman of the House Financial Services Committee Maxine Waters (D-CA) wrote two separate announcements condemning Brooks’ statements on the Community Reinvestment Act and reopening the economy. 

Yesterday, the OCC invited crypto industry players and banks to put their heads together on ways of streamlining the financial system. Speaking with Cointelegraph, Brooks expressed enthusiasm for a whole range of crypto-enabled updates to legacy systems. 

Beyond Brooks’ work at the OCC, his immediate interest in the office stepping up its work with the crypto industry suggests what some suspected: This is what they hired him for. 

In a similar vein, with her term ending this month, Hester Peirce has been renominated for another five years as commissioner at the SEC. Known as Cryptomom, Peirce is a noted industry advocate, most recently championing a safe harbor for networks to decentralize. Her continuing presence on the commission would add to the general sense that government agencies are looking for people to onboard crypto expertise onto financial regulators.

The hunt for Venezuela’s crypto minister

The U.S. has long fought to stamp out the Venezuelan government’s oil-backed cryptocurrency, the Petro, as part of a broader sanctions campaign. As a result, the Petro has floundered in most parts of the world and even internally is supported by a series of unbacked declarations from Joselit Ramirez Camacho, the supervisor of Venezuela’s crypto program.

In the same week that Venezuela mandated that gas stations accept the Petro, U.S. Immigration and Customs Enforcement put out a $5 million bounty for information leading to Ramirez Camacho’s capture. 

At the end of March, the Department of Justice filed charges of money laundering and drug trafficking against Venezuelan President Nicolás Maduro. While they may be plausible, whether or not Maduro laundered money is certainly less important to the charges than the fact that the U.S. government wants him gone. However, attorneys at the time denied that there was evidence of laundering in crypto. 

Targeting Ramirez Camacho suggests that crypto, specifically the Petro, has gone up in the U.S.’s list of priorities when it comes to wearing down the Maduro regime.

Bitfinex and Tether market manipulation lawsuit amps up

The class-action lawsuit in New York City alleging that sister companies Bitfinex and Tether worked together to manipulate the global cryptocurrency market consolidated recently, with the legal teams of Selendy & Gay and Roche Cyrulink Freedman taking over as lead counsel for the class after a contentious battle between four separate groups of plaintiffs. 

The plaintiffs have filed a new and improved complaint in that class action, alleging that the firms are legally on the hook for over $1 trillion of market manipulation owed to crypto investors over the past three years or more. The expanded complaint also ropes in Bittrex and Poloniex, other major exchanges. 

As has become routine over the course of these class actions, Bitfinex and Tether issued a statement dismissive of the claims and confident of success. However, the armada of lawyers that filed the separate actions clearly smelled blood in the water. 

The allegations hinge upon an investigation by the New York Attorney General into an $850 million deficit in Tether’s supposed 1-to-1 dollar reserve. Despite Tether’s controversy, USDT remains the most-traded cryptocurrency in the world day after day. 

Further reads

In the face of Facebook’s resistance to flagging social media posts from President Trump, Chris Meserole looks at the challenge of moderating

Attorneys from Baker Hostetler break down the class action over Tezos ICO that is currently in talks to settle over some $25 million. 

The protests have reshuffled the list of most-downloaded apps in the U.S., writes Vox’s Rani Molla.

Subscribe to the Law Decoded newsletter, delivered every Friday

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