Manoj B Rawal
Independent Analyst
- Funds worth almost $90 mln withdrawn from Bitfinex's cold wallets.
- Legal spat with NY's AG worth $850 mln could be the cause.
Bitfinex has seen funds worth almost $90 million being withdrawn from its cold wallets over the past 24 hours to addresses unknown as the exchange tries to fight its way back to charges worth $850 million, levied by New York's Attorney General. Bitfinex and Tether both have publicly renounced these allegations.
Bitfinex, which has the same owner as that of Tether, has not explained reasons of this large amount of funds withdrawals even as Tether and Bitfinex both face legal charges over potentially missing funds.
This spat with AG, potentially emerges from Bitfinex's 2018 agreement with Crypto Capital Corp., a payment gateway firm, wherein the third party held funds with itself instead of just handling users' withdrawals. Bitfinex has still not been able to retrieve those funds.
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. We are and have been actively working to exercise our rights and remedies and get those funds released. Sadly, the New York Attorney General’s office seems to be intent on undermining those efforts to the detriment of our customers.
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