Bitfinex Activity, Tether-BTC Price Relation Under Scrutiny from US DoJ, Sources Claim

Neutral Bitfinex Activity, Tether-BTC Price Relation Under Scrutiny from US DoJ, Sources Claim

The U.S. Department of Justice ( DoJ) has focused its investigation crypto market manipulation on whether or not Tether (USDT) was used to artificially inflate Bitcoin (BTC) prices during last year's momentous rally, Bloomberg reports Nov. 20.

Bloomberg cites three unnamed sources "familiar with the matter" who allege that the DoJ has "honed in" on the triad of Bitcoin, Tether, and its affiliated crypto exchange Bitfinex - the latter two of which share a CEO, Jan Ludovicus van der Velde.

The sources have reportedly alleged that the DoJ is looking into how Tether issues its new tokens and why the majority of Tether enter the market via Bitfinex, in the context of a broader enquiry into whether "market tricks" partially inflated crypto prices in recent years.

As previously reported, the DoJ and U.S. Commodity Futures Trading Commission ( CFTC) jointly opened a criminal probe this May into Bitcoin and Ethereum (ETH) price manipulation by crypto traders.

Bloomberg today states it has been "unable to determine" whether the DoJ probe is solely focused on activity on Bitfinex, or whether the exchange's executives have themselves come under scrutiny. Both the DoJ and CFTC have reportedly declined to comment, and neither has either formally accused any party or entity of wrongdoing.

Neither Bitfinex's general counsel, nor legal representatives for the exchange and Tether, have reportedly responded to Bloomberg's requests for comment either by press time.

The DoJ's allegedly intensified probe into activity on Bitfinex adds to prior investigations into possible misconduct; both Bitfinex and Tether received subpoenas from U.S. regulators for undisclosed reasons back in December 2017, which Bloomberg relates to insistent doubt over Tether's claims that USDT is backed one-to-one by the U.S. dollar.

Vocal Tether critics have gone so far as to accuse the firm of covering up an alleged fiat reserve deficit in complicity with Bitfinex; suspicion was further fanned by Tether's controversial decision to dissolve its relationship with a third-party auditor this January. Tether has since released an unofficial audit in June to prove that its tokens are backed by the correct amount of fiat holdings.

Further controversies were stoked this June when an academic paper co-authored by University of Texas professor John M. Griffin argued that "purchases with Tether are timed following market downturns and result in sizable increases in Bitcoin prices." Two of Bloomberg's sources have today claimed that Griffin briefed the CTFC on his findings earlier this year, although the academic has reportedly declined to comment in response to Bloomberg's inquiries.

This fall, Bitfinex has been plagued by rumors of insolvency and alleged banking difficulties, which it has officially denied. In late October, Tether redeemed and destroyed 500 million USDT from its treasury wallet; the action provoked yet further controversy given Tether's recent - if brief - loss of its U.S. dollar peg. Such large-scale redemption prompted some to accuse the firm of manipulating the market by redeeming at low cost and liquidating after market rebound.

11/20/2018 / 16:40:00 Source: cointelegraph

Altcoin | Bitfinex | Tether | USA | Markets | Stablecoin | | USDT|BTC|Exchange|Market|Trading
BTC
1 BTC=$3,489.32
XRP
1 XRP=$0.3079
ETH
1 ETH=$91.13
XUC
1 XUC=$2.09
EOS
1 EOS=$2.04
BCH
1 BCH=$97.50

News Feed 50

Cointelegraph Neutral - Dutch Central Bank Proposes License Requirement for Cryptocurrency Service Providers read more.
12/12/2018 / 18:14:00
Cointelegraph Neutral - Russian Draft Bill Blocking Suspicious Financial Websites ‘Could’ Cover ‘Scam’ ICOs, Experts Note read more.
12/12/2018 / 18:05:00
Cryptoglobe Neutral - UAE, Saudi Arabia to Jointly Launch Cryptocurrency for Interbank Transactions read more.
12/12/2018 / 18:00:51
Bitcoinist Neutral - Coinbase Slammed For Venezuela ZCash Airdrop Being an ‘Advertising Strategy’ read more.
12/12/2018 / 18:00:25
Trustnodes Neutral - Southern Europe Signs Blockchain Accord, House Bill to Promote Cryptos, CFTC Requests Comments on ETH, Augur Faces a Governance Question read more.
12/12/2018 / 17:59:57
Blokt Neutral - XYO Will Launch the Blockchain Satellite ‘EtherX’ into Space Using a SpaceX Falcon 9 read more.
12/12/2018 / 17:59:36
Cointelegraph Neutral - IBM Research Teams up With Agritech Firm to Boost African Agribusiness with Blockchain read more.
12/12/2018 / 17:51:00
Blokt Neutral - Galaxy Digital’s Mike Novogratz Narrates His Crypto Journey, Says He Is Still Bullish read more.
12/12/2018 / 17:34:31
Newsbtc Neutral - Crypto Exchange OKEx Relists Bitcoin ABC Under Original Bitcoin Cash (BCH) Ticker read more.
12/12/2018 / 17:30:31
Bitcoin.Com Neutral - Bitwala Begins Offering Bank Accounts With Bitcoin Wallet and Debit Card read more.
12/12/2018 / 17:15:05
Ccn Neutral - Bitcoin Price ‘Could Go from Bad to Worse’: Bearish Analyst read more.
12/12/2018 / 17:11:23
Coindesk Neutral - Ethereum’s Geth Software Upgrades Ahead of January Hard Fork read more.
12/12/2018 / 17:00:47
Cryptoinsider Neutral - Dogecoin is more decentralized than NEO, IOTA, NEM, Stellar, and Nano read more.
12/12/2018 / 17:00:23
Cryptoglobe Neutral - UK-Based Exchange CEX.IO Moving To Mandatory User Registration read more.
12/12/2018 / 17:00:00
Newsbtc Neutral - Only 4 Crypto Exchanges Have 100,000+ Active Users read more.
12/12/2018 / 16:59:30
Trustnodes Neutral - Most Cryptos Very Close to the Bottom Says This Week’s Technical Analysis read more.
12/12/2018 / 16:29:15
Cointelegraph Neutral - Canadian City of Calgary Launches Local Digital Currency for Intracity Transactions read more.
12/12/2018 / 16:21:00
Blokt Neutral - EOS Breaks Downward Trend as Market Leader Bitcoin [BTC] Finds Support read more.
12/12/2018 / 16:14:13
Cointelegraph Neutral - Germany’s Second Largest Stock Exchange, SolarisBank Partner to Launch Crypto Exchange read more.
12/12/2018 / 16:12:00
Blokt Neutral - IBM May Offer Blockchain-based Solutions to Indian Telcos read more.
12/12/2018 / 16:09:41
Cointelegraph Neutral - Allianz Global Investors CEO Says Crypto Assets Should Be ‘Outlawed’ read more.
12/12/2018 / 16:07:00
Ccn Neutral - Razer Wants Gamers to Mine Cryptocurrency Using their Idle GPUs — But You Probably Shouldn’t read more.
12/12/2018 / 16:01:42
Blokt Neutral - Full-Blown Reversal for the Price of Factom [FCT] read more.
12/12/2018 / 15:59:59
Trustnodes Neutral - Bitcoin Tops “What is…” Google Searches in US and UK read more.
12/12/2018 / 15:51:01
Cointelegraph Neutral - China: Shenzhen Special Economic Zone to Use Blockchain for Electronic Tax Invoices read more.
12/12/2018 / 15:50:00
Blokt Neutral - Ripple’s XRP Continues Range Trading As Market Leader Bitcoin [BTC] Finds Support read more.
12/12/2018 / 15:48:21
Ccn Neutral - What is Holding Coinbase Back From Integrating Ripple (XRP) Into its Exchange? read more.
12/12/2018 / 15:35:52
Cryptoglobe Negative - #Ethereum (ETH) Price Analysis – December 12 read more.
12/12/2018 / 15:28:49
Bitcoin.Com Neutral - Netherlands to Regulate Cryptocurrencies in Bid to Curb Money Laundering read more.
12/12/2018 / 15:15:35
Blokt Neutral - Bitcoin [BTC] Tests Key Support Level – Bullish or Bearish? read more.
12/12/2018 / 15:14:47
Newsbtc Negative - Billionaire Mike Novogratz Says Crypto ICO Market is Pretty Much Dead Now read more.
12/12/2018 / 15:09:15
Cointelegraph Neutral - India’s Telecom Regulator Completes Mobile Blockchain Pilot with IBM read more.
12/12/2018 / 15:09:00
Cointelegraph Neutral - Crypto Exchange Coincheck’s Owner Monex to Launch Crypto Trading in US starting Q1 2019 read more.
12/12/2018 / 15:04:00
Blokt Neutral - TRON Giveaways and Promotions Kickoff for the Holiday Season read more.
12/12/2018 / 14:59:14
Cointelegraph Neutral - Developers Test Cross-Blockchain Protocol for One-Way ERC20-Bitcoin LN Atomic Swaps read more.
12/12/2018 / 14:51:00
Cryptoglobe Neutral - Former Mt. Gox CEO Mark Karpeles Facing Possible Ten-Year Prison Sentence read more.
12/12/2018 / 14:45:00
Cointelegraph Neutral - Report: Financial Criminal Allegedly Revealed as Figure Behind ‘Blockchain Terminal’ ICO read more.
12/12/2018 / 14:27:00
Ccn Neutral - Cryptocurrency Should be ‘Outlawed’: Allianz CEO Andreas Utermann read more.
12/12/2018 / 14:26:57
Blokt Neutral - Dash: After the Fall, Where Does Price Find Support? read more.
12/12/2018 / 14:24:43
Coindesk Neutral - Novogratz’s Galaxy Digital Backs $4 million Raise for Crypto-Lender BlockFi read more.
12/12/2018 / 14:20:09
Trustnodes Neutral - Brexit Bitcoin Shows no Premium While Pound Nears Euro Parity as Crisis Descends on the Palace read more.
12/12/2018 / 14:16:15
Coinnounce Neutral - Bitcoin Whale Alert: 20157 BTC transferred to Bitfinex read more.
12/12/2018 / 14:13:08
Cointelegraph Neutral - Denmark Targets 2,700 Bitcoin Traders for Tax Payments After Tip-Off From Finland read more.
12/12/2018 / 14:11:00
Blokt Neutral - Alibaba Cloud Becomes One of the 16 New Members to Join the Hyperledger Global Forum read more.
12/12/2018 / 14:04:38
Financemagnates - Saudi Arabia and the UAE Central Banks to Create Joint Token read more.
12/12/2018 / 14:01:12
Cryptoglobe Neutral - Samsung Denies Rumors of Launching Cold Storage Crypto Wallet for Galaxy S10 Smartphone read more.
12/12/2018 / 14:00:00
Ccn Neutral - FATF: UK Crypto Exchanges Pose ‘Low’ Money Laundering, Terrorist Financing Risk read more.
12/12/2018 / 13:34:43
Coindesk Neutral - Allianz Global Investors Chief Calls for Cryptocurrency Ban read more.
12/12/2018 / 13:30:57
Cryptoglobe Neutral - #XRP Price Analysis – December 12 read more.
12/12/2018 / 13:30:00
Cointelegraph Neutral - Nigerian Banking Regulator Warns Bitcoin’s Disintermediation Is a ‘Critical Concern’ read more.
12/12/2018 / 13:21:00
Negative
4.4%
Neutral
94.4%
Positive
0.9%
Mixed
0.2%

Latest comments:

4 min
Hey Sam, how is it going? But I must explain to you how all this mistaken idea of denouncing of a pleasure and praising pain was born
3 min
Pretty good. Doing my homework.. No one rejects, dislikes, or avoids pleasure itself, because it is pleasure, but because
2 min
Any chance to go out? To take a trivial example, which of us ever undertakes laborious physical exercise, except to obtain some advantage
2 min
.. Maybe 40-50 mins. I don't know exactly. On the other hand, we denounce with righteous indignation and dislike men who are so beguiled
1 min
Anyway sounds great! These cases are perfectly simple and easy to distinguish.