Bitfinex was able to raise a billion dollars that was presumably used to repay the loan to tether.
The NYAG action has more or less been won by Bitfinex -- they no longer have to produce documents to the NYAG, and the order obtained by the NYAG has been reduced to prohibit bitfinex and tether from conducting related party transactions for some number of months.
The NYAG action has more or less been won by Bitfinex -- they no longer have to produce documents to the NYAG, and the order obtained by the NYAG has been reduced to prohibit bitfinex and tether from conducting related party transactions for some number of months.
The fact that Bitfinex lost the $850M to begin with is alarming, though
Are you sure about the lost part?
If I'm not mistaken the funds have been locked (arrested). It is not like they were irrevocably confiscated or something to that tune. And given that Bitfinex generally follows the legal path and battles in courts (unlike the infamous WEX), there is a good chance they will get their money back, at least some part of it (hopefully, the biggest part). That's likely the reason why the market has been so indulging and bailed them out
I'd be a lot more concerned about federal agencies. They spend years building cases before pouncing. The CFTC investigation goes back something like 1.5 years
Okay, they have built their case and taken Bitfinex to court, what's next? The agency in question (CFTC) had already fined the exchange a few years ago. For something like 60 grand (if my memory serves me right). Pretty insignificant amount compared to 850M in custody right now
