Connect with us

News

Bitfinex: Upper echelons of exchange’s board sparks debate; compliance cross-over?

Avatar

Published

on

Bitfinex: Upper echelons of exchange’s board sparks debate; compliance cross-over?
Source: Pixabay

Bitfinex has not been in the news over the past few months for the right reasons, and an alleged compliance cross-over has brought the cryptocurrency exchange in the spotlight yet again. Ties between the upper echelons of the exchange’s executives and the banking elite have reportedly surfaced.

According to a series of tweets by @run_btc, Peter Warrack, the Chief Compliance Officer at Bitfinex is also appointed by the Royal Bank of Canada. Based on his LinkedIn profile, Warrack has been with the RBC since 2002, first as a Senior Manager Intelligence and then as Head of Investigations, AML Financial Intelligence Unit.

Source: Twitter

Furthermore, the tweet also highlighted the bank’s negative stance on cryptocurrencies. As per an Investopedia article, linked by runbtc, summarizing Canadian’s Banks tryst with the decentralized currency space, the RBC stated that cryptocurrency transactions would be allowed “in limited circumstances.”

The tweet stated:

“Is it strange that the compliance officer for Bitfinex also work for the Royal Bank of Canada (which banned crypto) under the AML department?”

Warrack joined Bitfinex a year ago, in May 2018 with the exchange lauding him as an “expert in major crime investigation and anti-money laundering.” An introductory blog post did mention Warrack’s “senior role,” with both the Royal Bank of Canada [RBC] and the Bank of Montreal.

Interestingly, Tether Limited, the company that operates the largest stablecoin in the world Tether [USDT] owned by the same company that operates Bitfinex i.e. iFinex follows a similar compliance pattern. Only two months after Bitfinex appointed Warrack, Tether followed suit.

Leonardo Real joined Tether Limited in July 2018, as their Chief Compliance Officer. Real, like Warrack, worked in the AML department of a large financial bank in Canada, serving previously as an AML Quality Control Manager at the Bank of Montreal, which has also affirmed its position in opposition to Canada’s growing cryptocurrency industry.

This alleged cross-over from anti-crypto banks to cryptocurrency exchanges, with seemingly prevalent ties, comes weeks after Bitfinex was called out for fraud by the New York Attorney General’s office. As per the NYAG report, the exchange covered up undisclosed losses worth $850 million using their USDT reserves.

Following this debacle, the exchange issued their native tokens LEO, which brought in $1 billion via an initial exchange offering [IEO] within around 10 days of the sale going live.





Subscribe to AMBCrypto’s Newsletter


News

Justin Sun on shaking down the Internet, Coin Metrics on Kin’s blockchain activity and more

Jibin M George

Published

on

Crypto News – 26 June

Bitcoin breaches new resistances: In a sensational run that saw the coin surge by 15% over 24 hours, the world’s largest cryptocurrency breached the $12,000 mark, while also briefly touching the $13,000 mark, before falling again

Read more at https://bit.ly/2ZMkS10

Tone Vays on Bitcoin’s biggest strength: Tone Vays opined that Bitcoin’s biggest strength was the fact that it was completely “unconfiscatable” and that one’s BTC is completely safe if it is protected and secured with attention

Read more at https://bit.ly/2RD2BjL

Tron Foundation launches new inititative: Justin Sun’s Tron Foundation announced a $20 million TRX buy-back plan to promote community activity and market stability

Read more at https://bit.ly/2X8aA9W

Joe Kernen on Bitcoin, Libra: The once crypto-skeptic, CNBC Squawk Box’s Joe Kernen is of the opinion that Libra is for corporations, while Bitcoin is for the people

Read more at https://bit.ly/31MkqSa

Bloomberg on JPM Coin: According to a report by Bloomberg, the Jaime Dimon-led institution plans to launch the JPM coin and use it for bond transactions

Read more at https://bit.ly/2X75DTr

Fundstrat report on stablecoins: According to a recent report by New York-based Fundstrat Global Advisors, the FS CryptoFX Stablecoin index fell by a whopping 21 percent against BTC, with Gemini outperforming Tether [USDT]

Read more at https://bit.ly/2X5qPJw

BitGo’s latest collaboration: Bitcoin IRA has announced that it will be teaming up with BitGo to launch crypto-retirement accounts insured for $100 million

Read more at https://bit.ly/31UvjBz

 





Subscribe to AMBCrypto’s Newsletter


Continue Reading