Bitfinex’ed Claims EOS Bailed Out Tether, Says EOS and USDT Have the Same Founders
Did EOS Bail Out Tether and Do They Have the Same Founders?
Notorious crypto critic Bitfinex’ed took to Twitter earlier today to make some controversial claims. Bitfinex’ed (@Bitfinexed) tweeted that EOS conducted its ICO to bail out Tether, and that EOS and Tether have the same founders.
You’ve probably heard that Tether and Bitfinex have the same founders. That news broke earlier this year amidst the controversial rise of Tether. Now, Bitfinex’ed is taking the claim a step further by claiming that EOS and Block.one are all tied into the Tether scam, and that the same people are running the operation.
All of this news comes amidst new controversy with Block.one. Earlier today, it was revealed that some early executives were leaving Block.one, the Peter Thiel-backed crypto startup behind EOS. The timing seems strange because Block.one just completed a $4 billion funding ICO, with $1 billion of that funding reserved for EOS’s development.
Now, however, Bitfinex’ed claims the connection between major cryptocurrency companies goes one step further. Bitfinex’ed claims that not only do Tether and EOS have the same founders, but EOS conducted its crowdsale to bail out Tether.
Bitfinex’ed’s only real proof is that Tether’s Freeh, Sporkin & Sullivan LLP (FSS) audit report was completed “just as the EOS ICO ended.” That suggests that the ICO’s funds were used to prove Tether was solvent.
Block.one, meanwhile, just completed a year-long $4 billion ICO, ending the largest crowdfunding event involving the sale of a new cryptocurrency. $1 billion of the $4 billion raised was reserved for assisting with the development and financing of EOS.
Is Block.one Running a $4 Billion Exit Scam?
News of the executives’ departure was quickly greeted with criticism from the crypto community. Here’s what one critic wrote on Twitter:
They raised $4 billion dollars, put out a shit open source protocol and then all the execs left 1 month after main net launch to start another company that is now in stealth.
— Jacob Canfield (#I❤️Crypto) (@ILOVECRYPT0) September 25, 2018
Bitfinex’ed responded to this tweet with his now-infamous claim that both EOS and Tether were founded by the same people, and that Block.one needed to raise $4 billion to pay for the Tether scam.
It’s hard to tell what Bitfinex’ed is getting at here, or how EOS and Block.one is connected to Tether and Bitfinex in any way, shape, or form. As far as we now, there’s a clear connection between Bitfinex and Tether, but there’s no apparent connection between EOS and Tether.
There’s Something Fishy Going on With Noble, Bitfinex, and Puerto Rico
Earlier this year, it was reported that Bitfinex was heading to the Caribbean: Bitfinex announced plans to partner with Noble Bank International, a San Juan, Puerto Rico-based bank. Here’s how Bloomberg explained it in May:
“According to three people with knowledge of the matter, Noble Bank International, based in San Juan, Puerto Rico, took over banking duties for Bitfinex last year.”
Earlier today, Bitfinex critic @CasPiancey tweeted an interesting series of events that have recently taken place regarding Bitfinex, Tether, and Noble Bank International:
So the following has occurred, as of late:
1. Phil Potter resigns as BFX/Tether CSO
2. Chief Compliance Officer brought in for BFX/Tether
3. Chief Compliance Officer for Noble resigns
4. CEO and a host of other execs resign from Noble
— Giancarlo Van der Velde Potter III (LLC) (@CasPiancey) September 25, 2018
@CasPiancey appears to be suggesting that the Puerto Rican bank’s executives have resigned due to increased involvement with Bitfinex and Tether.
What Does This All Mean?
Bitfinexed is the crypto community’s biggest critic of Tether. He may be right – but the individual also has a tendency to claim the sky is falling any time any news breaks about Tether or Bitfinex.
It’s unclear how Block.one and EOS are tied into Bitfinex and Tether. Bitfinexed is making claims that Tether and EOS are owned by the same people, and that Block.one’s recent ICO for EOS was designed to prop up Tether.
There’s another possibility: Bitfinex’ed is enraged that the Tether audit report shows that the company is actually solvent, and that USD Tethers are backed by US Dollars. Instead of believing that report and trusting the auditors, he’s looking for other sources of funding that could be used to prove Tether’s solvency – because he’s so far into the “Tether has no money” rabbit hole.
We’re going to have to wait for all of this information to shake out – because right now, it’s unclear what’s going on with EOS, Tether, Bitfinex, and Block.one, if anything. This could be the biggest scam and cover-up in crypto history – or it could be an overblown news story that gets forgotten in a week.