How Strong Is Bitfinex’s Rebuff Against New York AG’s Allegations, Labeling Them ‘False Assertions’
Days after the AG of New York announced that it was probing Bitfinex’s parent company, iFinex over a supposed $850 million dollar fraud, the crypto exchange has responded. In a short video shared by the Twitter outlet of Ambcrypto.com, Bitfinex alleges that the Attorney General may have acted in bad faith.
According to the British Virgin Islands-registered cryptocurrency exchange, the AG didn’t give proper notice, and it also failed to hear from the parties they claimed. Their rebuttals seemingly allude to bias and false accusations from the office of the Attorney General.
The response came hours after the AG, in a report, alleged that iFinex used Bitfinex Tether reserves to hide its losses. On Thursday, the office of New York’s AG, Letitia James, announced that it was investigating how Bitfinex had mysteriously lost $850 million. According to the AG, iFinex’s decision to hire Crypto Capital to be its payment processor in charge of handling customer payouts may have backfired.
The decision led to several financial institutions refusing to engage in business with them. And when iFinex realized the costly mistake, the AG alleges that this company took “at least” $700 from the US dollar-pegged Tether reserves without informing its investors.
The funds were later used to blanket their massive, undisclosed losses and meet customer withdrawals. However, while brushing the allegations aside, iFinex said that the money given to the Crypto Capital was not lost and are safely within their coffers.
They say they’ve been working around the clock to ensure the entire amount is released. According to them, the New York Attorney General’s office is ill-bent to see them lose customers.
This Isn’t The First Time That Tether And Bitfinex Are Getting Caught In A Web Of Controversy
In the world of crypto, the two are slowly becoming synonymous with controversy. Tether, a stablecoin reserve, had been accused of manipulating the market by developing new tokens, allegations it has always rebuffed.
IFinex is also charged with allowing NYC-based traders to invest in Tether without having a state-issued license. It remains to be seen how things will pan out.