Author

Topic: [2018-11-20] Bitcoin-Rigging Criminal Probe Focused on Tie to Tethe (Read 141 times)

legendary
Activity: 2912
Merit: 6403
Blackjack.fun
I have been telling people immediately after Bitfinex's "hack" that they should stop using that exchange, did anyone care? Nope. Even long term Bitcoiners still wire tens of thousands of dollars to Bitfinex and complain afterwards why it's not coming through when cashing out, or why they suddenly ask for 3% withdrawal fees. It's ridiculous.

People keep saying that banks are shit and they are out to work against crypto, but exchanges as Bitfinex are 100 times worse. They are the pest we'll continue dealing with for many more years to come. Poloniex is quite a joke as well, not sure how Circle was given regulatory approval to take them over with Tether on board. Doesn't it stink somehow? Roll Eyes

Earlier I was reading an older topic about crypto terms and one of them was:

"said three people familiar with the matter."

Is this seriously the standard of 'professional' journalism these days? There's nothing new here since those subpoenas all that time ago. Since then Tether's been operating cheerfully enough. I'll wait to see a few people hanging by their necks until they're dead before swallowing this.

There's no smoke without fire.

Bitfinex might not be involved that much in manipulating prices and printing tether but they are no innocent victims in this.
And running around the world to find the shadiest bank in the shadiest location on this planet isn't helping their image that much.

legendary
Activity: 2170
Merit: 1427
I wonder if this news will exacerbate the price disparity between Bitfinex/Tether and the rest of the market. Storing money there sounds like risky business. The Justice Department doesn't mess around. I lost a lot of money last year when they took down BTC-E.

I have been telling people immediately after Bitfinex's "hack" that they should stop using that exchange, did anyone care? Nope. Even long term Bitcoiners still wire tens of thousands of dollars to Bitfinex and complain afterwards why it's not coming through when cashing out, or why they suddenly ask for 3% withdrawal fees. It's ridiculous.

People keep saying that banks are shit and they are out to work against crypto, but exchanges as Bitfinex are 100 times worse. They are the pest we'll continue dealing with for many more years to come. Poloniex is quite a joke as well, not sure how Circle was given regulatory approval to take them over with Tether on board. Doesn't it stink somehow? Roll Eyes
sr. member
Activity: 267
Merit: 255
Quote
As Bitcoin plunges, the U.S. Justice Department is investigating whether last year’s epic rally was fueled in part by manipulation, with traders driving it up with Tether -- a popular but controversial digital token.

While federal prosecutors opened a broad criminal probe into cryptocurrencies months ago, they’ve recently homed in on suspicions that a tangled web involving Bitcoin, Tether and crypto exchange Bitfinex might have been used to illegally move prices, said three people familiar with the matter.

This doesn't sound good at all. I wonder if this news will exacerbate the price disparity between Bitfinex/Tether and the rest of the market. Storing money there sounds like risky business. The Justice Department doesn't mess around. I lost a lot of money last year when they took down BTC-E.
legendary
Activity: 2590
Merit: 3015
Welt Am Draht
"said three people familiar with the matter."

Is this seriously the standard of 'professional' journalism these days? There's nothing new here since those subpoenas all that time ago. Since then Tether's been operating cheerfully enough. I'll wait to see a few people hanging by their necks until they're dead before swallowing this.
legendary
Activity: 1666
Merit: 1196
STOP SNITCHIN'
I figured something like this might be happening behind the scenes after Bitfinex and Tether were subpoenaed late last year by the CFTC. Phil Potter's resignation a few months back was also slightly alarming.

Given that the DOJ is involved, and the investigation has been going on for a year or more now, I'd be wary of trading on Bitfinex or holding USDT. They may be gearing up to seize domains and assets. Also, as a separate matter going back years, I think Bitfinex may also be exposed to unlicensed money transmission charges.
legendary
Activity: 2912
Merit: 6403
Blackjack.fun
Full article:
https://www.bloomberg.com/news/articles/2018-11-20/bitcoin-rigging-criminal-probe-is-said-to-focus-on-tie-to-tether

Quote
As Bitcoin plunges, the U.S. Justice Department is investigating whether last year’s epic rally was fueled in part by manipulation, with traders driving it up with Tether -- a popular but controversial digital token.

While federal prosecutors opened a broad criminal probe into cryptocurrencies months ago, they’ve recently homed in on suspicions that a tangled web involving Bitcoin, Tether and crypto exchange Bitfinex might have been used to illegally move prices, said three people familiar with the matter.

Quote
A focus of the Justice Department’s investigation is whether the dramatic rise of digital tokens in recent years was purely driven by actual demand, or was partially fanned on by market tricks. Along with the CFTC, prosecutors have been looking into a number of trading strategies, including spoofing -- the illegal practice of flooding the market with fake orders to trick other traders into buying or selling, Bloomberg reported in May.

I knew that sooner or later this whole tether business will give us a coupon for a weekly free colonoscopy  Cry

Not sure how much about this investigation is true since "Spokeswomen for the Justice Department and CFTC declined to comment." but it will sure make an impact on the markets as if yesterday's drop was not enough.

Tether is right now t $0.961406, such a stable coin!

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