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A Loss of $850 Million in BitFinex, and the Customers have no idea at all!

It was recently revealed by the New York Attorney General’s office that a massive loss worth $850 million has been faced by a quite popular crypto exchange called Bitfinex. Since this is undoubtedly a huge loss, the firm was found using funds from affiliated stablecoin operator Tether to secretly cover this huge downfall.

A court order against iFinex Inc. has already been received by Letitia James, the NYAG. It was a clear order to put an end to the violation of New York laws as well as fooling around the residents of New York. Moreover, James added that during her investigation it was revealed that iFinex, was completely engaged in hiding the loss of $850 million which not only included the co-mingled client’s wealth but also the corporate funds.

She further revealed her own opinion over this whole incident by saying:- “New York state has led the way in requiring virtual currency businesses to operate according to the law. And we will continue to stand-up for investors and seek justice on their behalf when misled or cheated by any of these companies.”

LET’S TALK ABOUT THE $850 MILLION

The very initial doubt that dominated the whole crypto market was where did the money go?

Well according to the statements it was further revealed that the whole amount of $850 million, which undoubtedly included the customer as well as corporate funds, were sent to Crypto Capital Corp.

Crypto Capital Corp, which is nothing but a payment processor that is supposed to hold funds from other exchanges as well. It was also found that so far, almost $700 is alleged to have been transferred already.

Well, the most disturbing fact that came forward was the fact although to cover up their huge mess, they used funds from Tether’s reserve but neither the fund movement of Tether nor any detail about the losses was revealed to the customers.

THE COURT ORDER

Since the mess has already been created and the truth be told, all eyes are now on the court and its actions.

As far as the present scenario is concerned, there are strict orders from the court to restrict any activity like accessing, loaning or making any other claim to the dollar reserves held by Tether. It has a strict eye on the iFinex directors, employees, contractors, assignees, officers as well as principals so that no situation goes out of control.

Moreover, iFinex-affiliated individuals are strictly ordered to stay away from any document, records or files so that no evidence has tampered.

About Zaryab Afser

A stock market trader, a blogger , a cryptocurrency enthusiast ... Awareness of proper trend and Action at the correct time are the 2 most imperative tools to succeed in the crypto world. He will undoubtedly provide you with the first tool. Moreover he ensures that his readers never miss any data or news of the crypto world that might end up shifting your trade to the zenith of its glory. Cheers.

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