Bitfinex to Respond to NY Attorney General Office

Among other things, exchange operator denies that fraud has taken place or is taking place, also claims there are no victims that this injunction is protecting.
06 May 2019   411

iFinex Inc., which operates Bitfinex Bitcoin Exchange and parent company Tether Limited, said that the court order, which was previously achieved by the Attorney General of the State of New York, is based on incomplete and incorrect facts, as well as the wrong legal standard. The company denies that fraud has taken place or is taking place, and also claims that there are no victims that this injunction is protecting.

In the iFinex document, it stressed that the New York Attorney General’s Office did not explain how exactly USDT being qualifies as a security or commodity and why it is subject to the so-called Martin Act on counteracting fraud. The company also pointed out the fact that the jurisdiction of the department in relation to Tether is vague, and this question needs to be clarified before the defendants start to go to meet the investigation.

Attorneys at the Hong Kong Stock Exchange added that, due to the prescription, Tether Limited reserves of more than $ 2 billion were frozen indefinitely, which is detrimental to investment activities. In their opinion, such active intervention by the Prosecutor General’s Office is unreasonable.

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At the same time, the company noted that Tether had updated the USDT Stablecoin policy on the official website, after which users could and can sell their tokens if they wish. The exchange operator explained that Bitfinex had never undertaken to inform users of all the information that they may consider important.

The Prosecutor General’s Office also incorrectly calls users of the site and USDT holders investors, giving them additional rights in the context of access to information, lawyers say.

Fake Trading Share to Reach 68%, - FTX Global

This figure, however, is significantly lower than what Bitwise's report and the discrepancy is explained by the difference in methodology
04 July 2019   1041

The exchange of derivatives FTX Global and Alameda Research conducted a study that estimated the volumes of fictitious transactions (wash trades), presumably prevailing in many cryptocurrency exchanges.

The report says that 68.6% of trading volumes displayed by CoinMarketCap are fake. This figure, however, is significantly lower than what Bitwise Asset Management announced in March.

The discrepancy between the results in almost 30% of the authors of the new study is explained by the difference in methodology. So, FTX Global is sure that Bitwise used an too strict approach to data analysis, which is why a significant proportion of real trading volumes fell into the category of fake ones.

While our methods are not foolproof, we believe they paint the most accurate picture of the true nature of cryptocurrency trading volume that anyone has made publicly available as of yet.

FTX Global Team

The Alameda methodology involves verifying the authenticity of data on trading volumes on various exchanges based on six different parameters, including manual verification of information and comparison of order books.

FTX Global Website
FTX Global Website

In particular, the experts found out that some sites provided data on the volumes of foreign exchanges for their own, with a slight delay in time. Other platforms used more advanced techniques - for example, they introduced large fake volumes only against the background of many smaller orders, thus trying to hide the true state of affairs.

The main purpose of these tactics is to raise the platform higher in the CoinMarketCap rating, creating a false impression of its liquidity. It also sometimes allows for the ability to charge a higher listing fee.