U.S. Regulators Subpoena Bitfinex and Tether

Bitcoin fell lower $10 000 on the background of these events
31 January 2018   1494

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.

2 Israelis Busted on Suspicion of Bitfinex Hack

Also, brothers Eli and Assaf Gigi created clones of popular crypto websites and used them for phishing attacks; a total of tens of millions dollars were stolen
24 June 2019   474

Israeli police arrested two brothers suspected of breaking into the Bitfinex cryptocurrency exchange and carrying out a number of phishing attacks. Police claims that the brothers managed to steal tens of millions of dollars. This is reported by the Cointelegraph.

Thus, the brothers Eli and Assaf Gigi created clones of websites of large cryptocurrency exchanges and wallets, distributed links to them through various crypto-communities, thus obtaining user account data.

In addition, according to police, they took part in the hacking of Bitfinex, which occurred in 2016.

It is worth noting that the alleged victims of the attacks of the brothers were in the EU and the United States, and therefore, law enforcement officers from several countries were engaged in the search for intruders.

It is reported that during the raid, the police discovered a cryptocurrency wallet containing significantly less money than it was allegedly stolen by the brothers.

At the beginning of the month, funds in Bitcoin wallets, which are used to store assets stolen from Bitfinex in 2016, suddenly began to move.