Connect with us


Bitfinex claims New York AG’s court filings written in ‘bad faith’ and ‘riddled with false assertions




New York AG's court filings were written in "bad faith" and are "riddled in false assertion", says Bitfinex's rebuttal
Source: Unsplash

Bitcoin and Tether have been closely related since time immemorial, but the recent string of events pushed the price of Bitcoin down by 9% in about 3 hours. This has caused a domino effect, causing the price of other altcoins to fall as well.

The New York State Attorney General is suing Bitfinex and the closely affiliated firm, Tether, responsible for the infamous stablecoin, USDT. According to Yahoo, NY AG released a 23-page document which suggested that the AG has reason to believe that there might be a fraud being carried out by the two companies in cahoots with each other.

Yahoo stated that among other things, Tether and Bitfinex are engaged in, “undisclosed, conflicted transactions to cover Bitfinex’s losses, approximately $850 million, by transferring money out of tether reserve funds.”

Tether and Bitfinex aren’t completely unaware of their problems in trying to retain banks for their business and the allegations of Bitcoin’s 2017 pump was fueled by Tether and Bitfinex. Bitcoin’s prices took a nasty fall after the news broke out. However, the prices have recuperated partially since then. Bitfinex too did not waste time with its rebuttal to the New York AG’s charges.

Bitfinex’s rebuttal stated that New York’s AG released the order without giving the parties proper “notice or hearing” and that the Attorney General was attempting to “compel Bitfinex and Tether to provide certain documents and seek certain injunctive relief.” The same rebuttal was released by Tether.

The blog further stated,

“The New York Attorney General’s court filings were written in bad faith and are riddled with false assertions, including as to a purported $850 million “loss” at Crypto Capital. On the contrary, we have been informed that these Crypto Capital amounts are not lost but have been, in fact, seized and safeguarded.”

Bitfinex stressed that they were actively exercising their rights to get the stated funds released. It also added that the New York State Attorney General’s office seemed to be intent on undermining Bitfinex’s efforts, to the detriment of Bitfinex’s customers.

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 journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.


Bitcoin [BTC]: Blockchain reorgs are an important part of BTC protocol, says Money Button’s Ryan X. Charles

Arijit Sarkar



Bitcoin [BTC]: Blockchain reorgs are important, says Money Button 's Ryan X. Charles
Credit: Pixabay

Shortly after a major hack cost one of the world’s foremost exchanges, Binance, 7000 BTCs worth $41 million, Changpeng Zhao’s brief consideration of ‘reorgs’ spurred the crypto-verse’s interest. While aimed at recovering a $41 million loss, the idea was quickly dropped since it signaled telltale signs of market manipulation.

While the hunt to find the Binance hackers continues, it has sparked a discussion within the crypto-community to find out the direct implications of a ‘reorg’. While most crypto-analysts, influencers, and entrepreneurs despised the reorg idea, Money Button’s Ryan X Charles created waves when he tweeted,

“Blockchain reorgs are an important part of the Bitcoin protocol.”

Discarding any concerns of “market manipulation by the miners”, Charles argued that the reorg process would “encourage miners to stay on top of their game”. He further supported this claim by saying,
“If a miner gets reorged, it’s their loss. Users don’t care because their transactions are included in both chains.”
As the tweet gained traction in the crypto-verse, the community exhibited mixed feelings about Charles’ take on the short-lived reorg idea. One crypto-enthusiast went to the extent of disputing Charles’ claim of reorgs not affecting users, responding,
“It does affect users. If your chain has high chances of being reorg from time to time, then I cannot trust 1 conf as final. So no matter if your fees are low and Tx come into the first block .. I will still need to wait for more confirmations than a reliable chain.”
With the hunt behind the lost BTCs still underway, the community is yet to agree unanimously on the implications of any reorg idea that may be proposed in the future. If the reorg idea were to finally catch fire in the future, experts speculate it to be the fundamental ‘damage control’ strategy for future hacks and thefts of the similar kind.

Subscribe to AMBCrypto’s Newsletter

Continue Reading