January 15th is a pivotal day for the crypto market today as the conspiracy surrounding Tether’s use of USDT stablecoin and alleged relationship with Bitfinex crypto exchange catches up with the heat. Tether is in the spotlight again as the stablecoin issuer pumped additional USDT coins worth $ 4.2 billion into the market last month.
The connection between Tether Conspiracy and Bitfinex?
Now the demand for stable coins on the exchanges has increased massively due to the enormous trading volume following the recent market rally. However, this brings us back to the fact that institutional investors are really behind this Bitcoin price rally, leading to the conspiracy over Tether’s involvement in pumping BTC through the procurement of the USDT coins during the December 2017 crypto market rally.
You may be wondering what’s so special today? Before we talk about it, let’s take a look at the timeline of events from the past.
- As early as April 2019, the New York Attorney General (NYAG) accused stable coin operator Tether of covering Bifinex’s losses of USD 850 million by obtaining its USDT to cover the deficit. However, Tether responded calling the accusation “malevolent” and “full of false allegations”. Note that NYAG has filed charges against iFinex, the parent company of Bitfinex and Tether.
- During the injunction in May 2019, Judge Joel Cohen extended the deadline to an additional 90 days. By August 2019, NYAG provided further evidence highlighting how Bitfinex and Tether were allegedly involved in covering the $ 850 million loss. NYAG later also called iFinex’s motion, “an improper attempt to obstruct a lawful investigation.”
- The case took an interesting turn in September 2020 last year when Judge Cohen ruled that both Tether and Bitfinex should produce documents disclosing their financial relationships. He also issued an injunction prohibiting Tether from granting Bitfinex an additional 90 days of credit.
- Last month, on December 9, 2020, Attorney General Letitia James filed a document asking Judge Cohen to extend the deadline to January 15, which I expect production will be completed in the coming weeks. “
- Today is January 15th, the day for iFinex to submit the documents and required information for NYAG to continue the investigation. iFinex must provide documents detailing the issue and redemption of Tether’s USDT stablecoins, as well as disclosing trading activities on Bitfinex in relation to USDT and Bitcoin.
We are currently at a crossroads uncovering the details of one of the most important cases in the crypto room. While we wait for developments to come, let’s take a look at what is happening around us.
Latest development around Tether’s USDT issue
Recently, a crypto trader known on Twitter by the name Santiago Capital has raised concerns about the process of transferring USDT / funds in Tether through Deltec bank in the Bahamas. The trader has raised questions about the discrepancy with the inflow / outflow figures of the Bahamian banks.
Santiago raises some legitimate questions about why money is processed through Deltec or another Tether correspondent bank. Read the full threat below to learn more about it. This is a conversation between Santiago Capital and FTX CEO SBF.
TBH This is probably why now that I think about it, there is a discrepancy with the Bahamian banks inflow / outflow numbers
– SER (@SBF_Alameda), January 13, 2021
In another thread, Santiago Capital had a conversation with one of the bankers Gregory P. Brach in Deltec Nassau, Bahamas. Santiago asked Gregory to provide details of the wiring instructions for USD fiat on the Deltec account. However, Gregory has refused to provide the details to those who are not Deltec customers.
Santiago, thank you for your interest in Deltec. We have several corresponding banks for several currencies. As with any process for a bank to get you foreign currency money for your domestic license (also known as a domestic or international bank), use the appropriate bank for
– Gregory P. (@dzrgreg) January 14, 2021
While questions have been raised about Deltec’s alleged relationship with Tether, it happens that Deltecbank itself holds a large position in Bitcoin. Well, the case is getting more interesting and it seems that Tether may be using the Bahamas route without maintaining transparency about how their funds are used. However, before we draw any conclusions, we would wait until we have an official position on the matter.
7:20 am in the video Deltecbank has a “big” position in Bitcoin, but Tether has absolutely nothing to do with it, right? @BennettTomlin @CasPiancey But it’s great to hear that other assets have also done well in 2020. Https://t.co/xbT9bSR6wt
– lenne (@ lenne0816) January 14, 2021
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