In an important and dangerous news in the digital currency market, the New York State Prosecutor investigates the case involving both Bitfinex and Tether, which follows the same department, in a $ 851 million loss. Yahoo Finance published a report that we are forwarding to you.
The New York State Prosecutor (NYSAG) sued the giant digital currency exchange Bitfinex, and its subsidiary Tether, which stands behind the USDT stable currency.
In a 23-page document dated April 24, it claims that NY AG has reason to believe that many traders in New York and the United States are dealing with the company's platform, while Bitfinex said in 2018 that it does not provide trading services to these clients in the state New York City.
The Office of the Attorney General has a current investigation to detect "ongoing frauds by Bitfinex and Tether" and requests all documentation related to Bitfinex users in New York State.
Details of the suit Picture of Bitfinex and Tether participating in "Unambiguous Conflicting Transactions to Cover Bitfinex Losses by Funds Transfer from Tether Reserve Funds."
According to the lawsuit, Bitfinex has partnered with Crypto Capital, which handles payments in Panama to handle customer withdrawals, after struggling to find a prestigious bank to work with.
Despite the considerable amount of money at stake, Bitfinex has not signed a formal contract or agreement with Crypto Capital.
According to the lawsuit, Bitfinex has confused customers' money via Crypto Capital. The notes in the lawsuit indicate:
"According to documents submitted to OAG by respondents, it is by 2018, Bitfinex has developed more than one billion dollars of customer funds and companies with Crypto Capital"
"As explained to the Attorney General's Office, Bitfinex and Tether also used a number of third-party payment processors to handle customer withdrawal requests, including various companies owned by executives at Bitfinex and Tether, as well as other friends of Bitfinex …
OAG believes that Bitfinex has requested third-party payment processing services such as Crypto Capital because at that time, Bitfinex did not have any trusted bank that could or could work with it. "
In October 2018, Bitfinex began to grapple with customer withdrawal requests. According to the New York State Attorney, the reason for this was the loss or theft of $ 851 million worth of funds by Crypto Capital (which is a mixed fund for the platform and its customers). To date, Bitfinex has not publicly disclosed the loss of funds.
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