Bitfinex'ed Hired a Lawyer to Fight Bitfinex

New stage of one of the hypest struggles in crypto community
13 March 2018   399

The Bitfinex'ed blogger, known for his criticism of Bitfinex cryptocurrency exchange, hired a well-known lawyer to defend his interests in the fight against a company that earned a controversial reputation. This is reported by CoinDesk.

Stephen Palley, a partner of the Washington-based law firm Anderson Kill, on Monday sent a formidable message to Bitfinex Chief Legal Adviser Stuart Högner. In his letter, Palli warned Högner that if he finds out that the threats that his client has received are worth Bitfinex, the exchange will "there will be legal consequences."

As you know, threats have been made and continue to be made against @bitfinex'ed. If we learn that your client is directly or indirectly responsible for these threats, or if any harm should take place to @bitfinex'ed as a result of these threats, there will be legal consequences.
 

Stephen Palley

Partner, Anderson Kill

Bitfinex'ed appealed to a lawyer back in December last year, when Bitfinex began to publicly threaten to hold him accountable, but until recently this fact was kept secret.

Although Palli did not explain the nature of the threats coming from Bitfinex'ed, the blogger himself reported last year that someone had offered a five-figure amount for information about him.

Bitfinex'ed also believes that the temporary blocking of his Twitter account was made after the service received a large number of complaints sent at the request of Bitfinex.

The blogger publishes detailed investigations that cast a shadow on the Bitfinex and the associated Tether cryptocurrency token issuer since August last year. He argues that Tether releases its USDT tokens, which have gained considerable popularity in the crypto currency market due to the stability of their exchange rate against the US dollar, without having a sufficient phyty reserve for this, which is a violation of the conditions for providing service to the company and jeopardizing the integrity of the entire market.

In January, the Bitmex Exchange published its own investigation, which stated that Tether does not necessarily engage in fraudulent activities and can be serviced by banks in Puerto Rico, but the associated risks associated with its tokens continue to pose a threat to the cryptocurrency community.

 

Bitfinex to Deny Drug Money Laundering Claims

Exchange conducted an "internal investigation of its international organization" and found no drug money laundering relations
11 April 2018   417

Bitfinex said that it conducted an "internal investigation of its international organization", during which it established that the site is not involved in the money laundering cases of Colombian drug cartels, which were previously reported in Poland. This is reported by CoinDesk.

As representatives of Bitfinex told the publication, no connection was found between the work of the exchange and the two shell companies accused of deceiving the Belgian government and laundering money from Colombia.

Representatives of the exchange said that "based on all available evidence and information, [it] has concluded that these allegations are untrue and unfounded"

Among the claims under dispute, Bitfinex has not been party to any official investigation launched in any jurisdiction globally on the basis of the allegations reported in the Polish media. This signals that the relevant authorities have found no reason to act upon the claims made against the Bitfinex platform.
 

Bitfinex Team

In addition, the platform stated that none of the users experienced any problems accessing their accounts or funds because of potential law enforcement actions.

For the first time the corresponding rumors appeared at the beginning of the week, when a number of media reported that officers of the Polish police confiscated the property of two front companies. The organizations were accused of "deceiving the Belgian government" and "working with a large online currency exchange". At the same time, the name of the site was not reported. As a result, local and international news agencies linked Bitfinex to these companies.

Earlier, the site also denied rumors that it allegedly owned by her € 400 million were seized in a little-known Polish bank.

Then the exchange was forced to react to the reports that appeared that the police had seized the account in the Polish bank Cooperative Bank, which is allegedly connected with Bitfinex. Initially, these statements appeared on Polish forums, and in the English-language press the news with the note "unconfirmed" was published by Trustnodes.

It was assumed that this account was seen in the international scheme for money laundering of Colombian drug cartels. As one user reported, the Polish police contacted him after he tried to withdraw money from Bitfinex through Crypto SP Z.O.O.

Representatives of Bitfinex reacted to these messages via Reddit, saying that these allegations are not true. Also, the exchange promised to make a separate statement on this issue in the future.