Bitfinex stops US residents support

Starting from 9th of November, popular Hong Kong cryptocurrency exchange stops US residents support 
17 October 2017   1880

The popular Hong Kong exchange Bitfinex reported that the process of stopping user services for US residents, which was launched in August, will be completed on November 9. 

At the initial stage, which began on August 11, the exchange stopped accepting new requests for verification from US users. Its decision was made due to tightening regulation of the cryptocurrency in the US:

A surprisingly small percentage of our revenues come from verified U.S. individual accounts while a dramatically outsized portion of our resources goes into servicing the needs of U.S. individuals, including support, legal and regulatory.
 

Official Bitfinex statement

This process has been stretched for three months, and from November 9 all transactions, including trading, input-withdrawal of funds, as well as provision of financing for margin trading will become unavailable for US citizens on Bitfinex. Holders of RRT (Recovery Right Tokens) tokens from the US will be able to sell them, starting from October 27. At the same time, the American users of the exchange will not be able to buy them.

Representatives of the exchange recommended that American users of Bitfinex withdraw all their funds before November 9.

 

Tether to Issue Commodity Backed Stablecoin, - Dong

Zhao Dong is major investor and shareholder of the Bitfinex
03 September 2019   227

Bitfinex exchange major investor Zhao Dong told Cointelegraph that Tether plans to release a USDT stablecoin option, backed by a basket of commodities such as gold, oil and rubber.

According to an insider, the purpose of issuing such a token is to reduce the risks associated with the need to store large amounts in banks to ensure it. Dong also stressed that the flagship stablecoin USDT is not 100% secured with a fiat dollar:

Tether is fully backed by reserves, out of 4 billion existing USDT about 3.35 billion are now in securities and 650 million are being lent to Bitfinex. Bitfinex has been raising 1 billion with it's LEO token IEO and could easily pay back Tether any time (as a matter of fact it already paid 100 million last month).
 

Zhao Dong

Shareholder, Bitfinex

Dong is confident that the level of provision with USDT reserves is generally sufficient to consider this stablecoin reliable.

Even if you don't calculate this 650 million as reserves the total amount backed by USD is 83.75% (3,350/4000) and not 72% as fake news are reporting.
 

Zhao Dong

Shareholder, Bitfinex

 Zhao Dong also remembered Tether’s plans to issue CNHT stablecoin linked to the renminbi and with reserves on offshore accounts.

CNHT will not interfere with PBOC [People’s Bank of China} capital control policy because CNH is different than CNY, as it's already an offshore product. On the contrary CNHT will help China to expand the adoption of CNH for international settlements.
 

Zhao Dong

Shareholder, Bitfinex

At the end of April, the New York Attorney General's Office charged Bitfinex with the fact that, having suffered a loss of $ 850 million, it withheld this fact, partially using the funds of Tether, the stablecoin issuer affiliated with it, to cover the damage. Later it turned out that these funds were frozen in the bank accounts of the Panamanian processing service Crypto Capital.