- How an Instagram feud led to the death of 9-year-old girl Today 11:08 AM
- A scarier ‘The Haunting of Hill House’ extended director’s cut is coming to Blu-ray Today 9:15 AM
- The 9 best podcasts for kids that entertain and educate Today 8:00 AM
- Swipe This! Why does my BFF get more likes on Instagram than me? Today 6:00 AM
- The 25 Tom Cruise movies that are essential viewing Today 6:00 AM
- No, that guy didn’t really fly alone on a Delta flight Saturday 4:31 PM
- Fans are paying to meet their favorite YouTubers online through pilot program Saturday 2:54 PM
- Behold: 12 straight hours of ‘Stranger Things” Alexei drinking a Slurpee Saturday 2:05 PM
- Influencer couple under fire for using holy water to splash genitals in Bali Saturday 1:29 PM
- These are the 10 best villains DC comics has ever conceived Saturday 1:11 PM
- The Daily Wire accused of stealing art design from pop artist for its merchandise Saturday 12:09 PM
- Instagram model Rianne Meijer on keeping it real with her followers Saturday 10:52 AM
- How to stream Chelsea vs. Leicester City Saturday 8:30 AM
- Florida man arrested after allegedly texting girlfriend his mass shooting plans Saturday 8:27 AM
- How to stream Real Madrid vs. Celta Vigo Saturday 8:20 AM
According to Attorney General Letitia James, iFinex, the Hong Kong-based company behind Bitfinex and Tether, transferred both client and corporate funds in secret.
The incident began in 2018, when Bitfinex, a major cryptocurrency exchange, gave $850 million to Panama-based company Crypto Capital–a third party payment processor.
While Crypto Capital was supposed to deal with customer withdrawal requests for Bitfinex, the company never did and instead kept the funds.
In an attempt to cover up the issue, at least $700 million was taken from Tether, a cryptocurrency allegedly backed by the U.S. dollar, and quietly transferred to Bitfinex, according to the attorney general.
Tether recently changed a section on its website to state that its cryptocurrency was backed by “reserves that include currency, cash equivalents and other assets and receivables,” not just U.S. currency–as it has long been claimed.
Denying the allegations, Bitfinex claims it never lost $850 million, but that the funds were instead merely “seized and safeguarded.” Bitfinex is also accusing the attorney general’s case of being in “bad faith and riddled with false assertions.”
Bitfinex representatives have also claimed that it would need “a few weeks” to get back the $850 million–although the attorney general’s office believes the funds are gone for good.
With a court order in hand, the attorney general’s office is now seeking information and documents from iFinex. The office has also ordered iFinex to halt any and all transfers between Tether and Bitfinex.
- How to buy cryptocurrency (in simple terms)
- Why bitcoin transactions aren’t as private as you think
- DJ Khaled, Floyd Mayweather charged with illegally promoting cryptocurrency
- Everything you need to know about bitcoin wallets
Mikael Thalen is a tech and security reporter based in Seattle, covering social media, data breaches, hackers, and more.