U.S. Regulators Subpoena Bitfinex and Tether

Bitcoin fell lower $10 000 on the background of these events
31 January 2018   212

The Commodity Trading Futures Commission of the United States (CTFC) began a close study of the activities of one of the leading crypto-exchange exchanges Bitfinex and Tether, sending representatives of both organizations summonses to the court. This is reported by Bloomberg.

Against the backdrop of this news, the price of bitcoin, which had been in the negative trend for the past two days, quickly went down, dropping for a short time below $ 10,000.

Bitcoin Price Chart
Bitcoin Price Chart

So, at Bitfinex, the bitcoin rate dropped to $ 9,900, while on the other popular Bitstamp exchange the price the first cryptocurrency fell to $ 9731.

We routinely receive legal process from law enforcement agents and regulators conducting investigations. It is our policy not to comment on any such requests.
 

Bitfinex and Tether in email statement

Representatives of the CFTC have not yet commented on the news.

The publication notes that Bitfinex and Tether on their websites and public documents don't disclose their exact location and the names of managers, in December last year a representative of both firms, Ron Torosyan, acknowledged the ties between Tether and Bitfinex.

Rumors about the relationship between the two organizations have been around for a long time, but only after the leakage and publication of the Paradise Papers were factually confirmed. As stated in the documents, in the past, Potter was the director and founder of Tether, and Devazini is the shareholder of the company. The dossier is also referred to by the New York Times, which at one time published a large article about the controversy surrounding Bitfinex and Tether.

ING Bank Confirmed Bitfinex Account Support

Wells Fargo had ended dealings with exchange last year and U.S. regulator said to send subpoenas to Bitfinex on Dec. 6
21 February 2018   225

Bitfinex, a large crypto-currency exchange that was in the spotlight of US regulators late last year, opened an account with ING after Wells Fargo refused to service it last year. This is reported by Bloomberg News.

ING spokesman Harold Reusken confirmed that Bitfinex is a client of the bank. He refused to go into details of their relationship, referring to the confidentiality of information, while specifying that the bank adheres to special practices regarding transactions related to crypto-currencies. Reusken did not say anything about Tether, which is connected with the Bitfinex issuer of USDT tokens, which causes a lot of questions in the crypto-currency community. Earlier, BitMEX researchers concluded that Tether money can be kept in Puerto Rico.

With companies that are active in the crypto market we are very reserved. Not with companies that are in traditional markets and receive or do payments with cryptocurrencies, but with parties that are in the chain of cryptocurrencies.
 

Harold Reusken

Spokesman, ING

Bitfinex did not divulge with which banks it operates, after the closure of the account in Wells Fargo. The ING statement is the first confirmation of the relationship between Bitfinex and a large financial company capable of providing storage services.

It is also unclear where Bitfinex was served after the breakdown of relations with Wells Fargo and when this account was opened.

The connection between Bitfinex and ING is interested by Dutch lawmakers. A member of the opposition workers' party, Nank Neybour, asked Finance Minister Vopka Hextra to look into this issue, including explaining why other banks broke off relations with Bitfinex and what measures the exchange and the bank take to prevent the use of their sites by intruders.