Tether Ltd and Bitfinex: What is the alleged conspiracy threatens the cryptocurrency market
"Tax harbor", as is commonly called offshore zones, hide trillions of dollars from financial regulators and tax authorities. Not only corrupt politicians and leaders of transnational corporations, but also famous athletes, representatives of the musical industry and even monarchs prefer to evade income tax and luxury.
There is no reliable statistics for assessing the total capital hiding in the shade, and experts disagree that it is the “tax harbor”. International Society not only does not imagine the scale of the problem, but can not even accurately calculate the number of offshore jurisdictions.
Any attempts to penetrate the secrets of financial elites come across a labyrinth of fictitious companies, dummmer owners and completely non -existent personalities, and in most cases are doomed to failure. For the world of offshores, confidentiality is the highest priority, and everyone who has any information, under any circumstances are not ready to reveal it.
However, representatives of the International Consortium Consorters (ICJI) and the leading world publications twice managed to break through the gap in this armor and get huge arrays of data (Panama Papers and Paradise Papers), shed light on the mechanisms of offshore transactions and their participants.
The main law of the cryptocurrency world is the code. The combined issue of Bitcoin will be 21 million units, since it is this number that is spelled out in the network code https://newsportal.com.ua/2022/06/29/nydig-attracted-100-million-from-insurance/ and cannot be changed for good or selfish purposes. Decentralization leveles the risk of financial fraud – this is its main advantage.
It may seem that the leakage of information about the offshore transactions of the powerful of this world and the growth of the popularity of cryptocurrencies have nothing to do, since the first financial elites refuel, and the second phenomenon owes its existence to the Vera of the broad masses [although the traditional financial establishment has been more and more interested in the new industry ].
Nevertheless, the large -scale investigation of Paradise Papers revealed the connection between the leadership of Tether Ltd and the Bitfinex cryptocurrency exchange, which in the medium term can affect not only individual defendants in this case, but also turn out for the cryptocurrency community of this disaster.
However, on the night of Friday, December 1, after long months, the “radio monitoring” of the Bitfinex and Tether Ltd, Ron Torosyan, sent a statement to a series of media outlets, in which he denied all the rumors and theories about unfair activities and problematic financial situation, as baseless accusations " dubious persons "hiding their personality.
According to Torosyan, the Bitfinex exchange makes all possible efforts to remain a transparent and accountable organization, controlled by a strong team of managers who have nothing to hide. In addition, he admitted that some connection between companies still exists.
How tinted Tether Ltd and Bitfinex
According to the data made public as a result of the investigation, the chief director of the Bitfinex exchange Strategic Planning Philip Potter and the chief financial director of the Bitfinex exchange Dzhankarlo Devazini in 2014 based on the British Virgin Islands Tether Holdings Limited .
Moreover, Paradise Papers indicate that F. Potter currently holds the post of director Tether Ltd (and combines it with the position on Bitfinex), and J. Devazini is a shareholder of the company.
A document also appeared on the Web, allegedly confirming the fact that CEO Bitfinex Louis Jean Van der Velde is also the current CEO Tether Ltd. The document below allegedly sets out the declarative statement of Van der Velde that he leads Tether Ltd.
Even the most reasonable and objective observers are forced to admit that a certain connection between the two organizations is present, especially since Torosyan confirmed this fact. The main question is for what purpose it is used.
How are the additional issue of USDT and pump prices Bitcoin prices related
At the moment, the aggregate issue of USDT is 795 million units (764 million in the course) Gagarin News . This indicator has increased by more than 5000% since January 2017 (15 million units). Moreover, only in November of this year, the company produced more than 150 million USDT.
The November emissions of Tether toker were followed by almost instant pampa Bitcoin prices on the Bitfinex stock exchange. On November 8, Tether Ltd has produced another 20 million tokens. On November 9 and 10, an additional 20 million USDT and 30 million USDT were issued, respectively.
As a result, the market immediately reacted. The Bitfinex exchange was made by warrant for the purchase of bitcoin with a total of $ 25 million, including a single warrant in the amount of $ 13.5 million. In just an hour, the price of bitcoin increased from $ 7075 to $ 7350.
It is worth noting that over the past two weeks, the Bitcoin exchange rate has stably updated historical maximums, and at the peak itself, when 1 BTC was traded above the psychological mark of $ 10,000, Tether LTD has produced another $ 50 million USDT (November 28).
Given the data of the journalistic investigation Paradise Papers, part of the cryptocurrency community doubted the good faith of the company. Moreover, some community participants are convinced of the existence of a conspiracy between Tether LTD and the Bitfinex exchange for artificial pampu Bitcoin price due to the massive issue of USDT tokens.
What are the consequences of this for the cryptocurrency world
Do not forget that USDT is not an American dollar, but a token, whose exchange rate is tied to an American dollar on the basis of a generally accepted belief that each token is provided with fiat money.
However, there was an occasion to doubt the veracity of such a statement. Below is a passage of a public discussion in which the Tether Ltd team (probably by chance) admitted that the USDT tokens are not provided with American dollars of real buyers, but by other cryptocurrencies convertible to Tether.
The results of an independent audit of companies and official data on reserves in bank accounts of Tether LTD to ensure a circulating number of tokens would help dispel the public doubts to display the public. The founder of Litecoin Charlie Lee also called for this company.
To publish their company, however, so far they refuse, claiming that their reserves are $ 500 million.
Many leading cryptocurrency exchanges, such as Poloniex, Bittrex and Huobi, use USDT as a replacement for a fiat dollar. They will also become the first victims if it turns out that the massive emission of tokens was not provided by anything.
Of course, partly all this looks like the next theory of conspiracy, similar to rumors about the involvement of the American government in the September 11th attacks and the existence of the world government under the leadership of the Rothschild dynasty.
But do not forget that society has not yet familiarized Tether Ltd with the banking balance, and the Bitfinex management has not refuted Paradise Papers with counterarguments, and even recognized that they have a share of truth. This means that, despite the different assessments of the probability of conspiracy, the risk of a deep collapse of the market and related problems with financial regulators persist.
Torosyan’s statement was caused by a flurry of criticism from the adherents of the conspiracy theory on Twitter. Thus, the unknown person called the Bitfinex PR manager an even greater “idiot” than the team members who said that USDT tokens are not fully provided with fiat dollars.
We will remind, earlier, as a result of a hacker attack, attackers stole USDT tokens totaling $ 30.95 million from Tether Treasury wallet. The address to which the funds was taken was made public, and all stolen tokens were marked. Thus, the attackers were partially isolated as a result of a temporary hard fork and the implementation of Omni Core update.
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