Connect with us

Bitfinex-Tether fiasco: Bitfinex could be receiving financial back-up while users flee scene




Someone might be financially backing Bitfinex to weather this storm while users might be fleeing the scene
Source: Unsplash

The Bitfinex and Tether lawsuit by the New York State Attorney General has put the companies in a tight spot and if the suit proceeds in favor of the AG, then the long speculated secrets about Tether and the alleged “fraud” of Bitfinex in covering up $851 million in losses might be out in the open.

Token Analyst shared a tweet that compared the inflow and outflow for Bitfinex, which insinuated a different scenario about the whole matter. The tweet, along with the picture, read:

“@bitfinex BTC flows tell a slightly different story. There is a 23K BTC ($118M) deficit between outflows and inflows today 😱😱”

Source: TokenAnalyst

The inflow of funds to Bitfinex drastically increased, to be specific, by 623% in 24 hours, whereas the outflow increased by 384%. However, this had two separate implications. First, the increase in the inflow might be somebody trying to bailout Bitfinex, which was the reason speculated by the Token Analyst. The second implication, which is connected to the outflow, is that users might be migrating from the exchange to other, safer, and regulated exchanges.

At the time of writing, the inflow was at ~$84 million and the outflow was $229 million, which could be hurting the company more than it should.

Source: CoinAnalyst

The Bitfinex/Tether drama continues to unfold as many prominent people in the community are saying “I told you so” while others are in shock and speculate how it could affect the whole of the crypto community, especially, Bitcoin. More about the Tether and Bitfinex will unfold after the documents are produced by the legal counsel of the defendants.

Subscribe to AMBCrypto’s Newsletter

Follow us on Telegram | Twitter | Facebook

Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time writer at AMBCrypto and a part-time novice trader.