U.S. Regulators Subpoena Bitfinex and Tether

Bitcoin fell lower $10 000 on the background of these events
31 January 2018   1203

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.

Bitfinex to Get Stolen BTC Back

As reported, Bitfinex will convert received crypto into US dollars and transfers them to RRT tokens holders
25 February 2019   184

The US authorities returned the Bitfinex 27.66 BTC cryptocurrency exchange, which was stolen as a result of a hacker attack in August 2016. These funds were in law enforcement since November 2018. This is stated in the official message of the site.

Over two years following the hack of the Bitfinex platform, today we see the results of a clear and robust response strategy and the efforts of the U.S. government. It gives us great pleasure to be able to reimburse our traders that were loyal to us and believed in us at a very difficult time. We would like to thank U.S. federal law enforcement agencies for their ongoing efforts to investigate the security breach and their commitment to seizing and returning stolen assets.
 

Giancarlo Devasini

Chief Financial Officer, Bitfinex

Bitfinex will convert received crypto into US dollars and transfers them to RRT tokens holders. The site opened up the possibility of converting BFX debt tokens into this asset after full repayment of debts on them in April 2017.