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Issue #471: Bitfinex gets sued by New York

Issue #471: Bitfinex gets sued by New York

Apr 26, 2019
Marty's Ƀent

Issue #471: Bitfinex gets sued by New York

As I'm sure a lot of you freaks are aware of already, late yesterday afternoon the New York Attorney General's office filed a lawsuit against Bitfinex claiming that the exchange did not have access to $851M in funds it claimed it did. The ugly saga of Bitfinex continues to rear its head and this time lawyers from the financial capital of the world are getting involved.

In true "early days of Bitcoin" fashion, there are many mysteries, shady entities, extreme negligence and the potential of the government causing this problem in the first place in play. The crux of the issue, according to Bitfinex, is that they do not have access to the $851M because an entity named Crypto Capital, which acts as a custodian of their funds, cannot send them the funds. According to Crypto Capital, they cannot send the funds to Bitfinex because the funds have been seized by the US and Portugal. What a shit show.

All of this comes less than three years after the exchange had 119,000BTC swiped from right under their nose (valued at around $72M at the time and $612.85M right now [holy shit]). A situation which forced the exchange to create a Bitfinex token dependent on the infamous stable coin Tether. After making the victims of that hack whole, Tether has continued to be used as an unregulated stable coin, operating in a very murky legal territory. The risk of legal action against Bitfinex has been well-known by anyone who has been observing the Bitfinex saga for long enough. It's no surprise to me that they have finally attracted the attention of some government entity.

Speaking of those stolen bitcoins mentioned above, they moved for the first time since the hack yesterday morning. Very fishy to Uncle Marty. This stinks of an inside job perpetrated by someone in this shady web of Bitfinex and Tether. Adding to this shadiness, the court documents released last night officially revealed that Bitfinex was using bank accounts of employees' "friends" to transfer money to clients. Bananaland.

Always remember, not your keys, not your bitcoin. Be safe out there, freaks. You never know when an exit scam or Uncle Sam is going to happen to your preferred exchange.

Our guy has been right before

And if he is again, some BCH and BSV bags are about to get a whole lot heavier.

sry not sry for your loss.

Final thought...

Watching the NFL Draft is for losers.

Enjoy your weekend, freaks.


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