Bitfinex, Tether (USDT) reach deal with New York State, pay $ 18.5m fine

Tether Ltd and Bitfinex will pay a fine of $ 18.5 million following an out-of-court settlement with the New York State Attorney General (NYAG). This agreement is the end of the legal drama for the USDT and the dispersal of a potential black swan for the entire market.

The end of a judicial soap opera

The exchange Bitfinex and its sister company Tether Ltd behind the stablecoin of the same name reached an out-of- court settlement with the New York State Attorney General’s Office (NYAG) after 2 years of litigation. As part of the deal, the two companies agreed to pay a fine of $ 18.5 million .

In April 2019, the New York State Attorney General filed a lawsuit accusing the Bitfinex exchange of using the reserves of its sister company Tether Ltd to cover a loss of $ 850 million . As a result, the Tether stablecoin (USDT) no longer had full convertibility into dollars.

Letitia James, New York State Attorney General, said:

“Bitfinex and Tether illegally and recklessly hedged significant financial losses to maintain their business and protect their bottom line (…) Tether’s claims that its stablecoin was fully backed by dollars at all times were a lie. “

Thus, Tether Ltd has long been accused of lacking transparency about its reservations. This matter was the focus of attention as it threatened the integrity of the USDT and therefore represented a systemic risk for the entire market .

The attorney general also demanded that Bitfinex and Tether cease operations in New York state . However, the loss of this market is anecdotal for both companies.

More transparency

As part of the deal, Tether also volunteered to provide the NYAG office as well as the public with a quarterly USDT reserves update .

Stuart Hoegner, Legal Counsel for Bitfinex, said:

“We share the Attorney General’s goal of increasing transparency … We would disclose to both the Attorney General’s office and the public additional information about Tether’s reserves on a quarterly basis. “

In the settlement agreement, the NYAG office also acknowledged the recent repayment of Bitfinex’s loan to Tether. In early February, the Bitfinex exchange claimed to have repaid its $ 900 million loan from its sister company.

With this out-of-court settlement, the USDT’s long legal drama comes to an end. Bitfinex and Tether say they have provided more than 2.5 million pages of documentation to the NYAG office to close this case.

You can easily increase your Bitcoin with this method

You can easily increase your Bitcoin with this method

Bitcoin and other cryptocurrencies are booming. The growing legitimacy of the young sector and the ever-increasing interest of institutional investors continue to drive the crypto market upwards. Nevertheless, the market is volatile and there are all kinds of dangers, especially for the inexperienced.

So how can you make sure you get a high return while minimising your risk? One popular option for this is crypto-arbitrage trading.

How do you make a profit with Bitcoin and Co.

A popular investment strategy is crypto-arbitrage trading. Investors profit from the volatility of the crypto market. By exploiting the price Crypto Code differences of cryptocurrencies on different exchanges, crypto-arbitrage trading generates profits. Bitcoin and co. are bought where they are valued lowest and then sold on in a flash on the exchange with the highest price. This makes it possible for crypto-arbitrage to make a profit from the price difference between the different crypto exchanges.

Furthermore, it is almost impossible for a normal investor to successfully do crypto-arbitrage trading manually. This is because it would mean sitting in front of a screen 24/7 and scanning every exchange at the same time.

This is why there are automated crypto-arbitrage trading platforms. These platforms use automated algorithms that can execute a huge amount of trades simultaneously and are faster and more efficient than humans. There are many options out there when it comes to choosing an automated crypto arbitrage platform, but one of the most popular examples on the market is ArbiSmart.

ArbiSmart scans crypto-arbitrage trading opportunities around the clock. As a result, the platform can generate returns of up to 45 per cent annually. Therefore, crypto-arbitrage is quite suitable as an option to make passive profits with Bitcoin and other cryptocurrencies.

How do you know which arbitrage trading platform is suitable?

Especially in the crypto space, one should be careful when choosing an arbitrage trading platform. Two factors usually take priority: profit and security. When it comes to profits, one has to decide what revenue targets one hopes to achieve from a platform and how reliable one can expect the returns to be.

Then, of course, there is the thorny issue of security. You have to weigh up whether a platform offers sufficient security and gives a trustworthy impression overall. You can never be too careful. However, there are some basic rules that you can follow.

For example, never go near an unregulated platform. Governments around the world are still trying to catch up with the rapid development of digital assets, and therefore consumer protection is extremely limited for those who do not work with a licensed service provider.

Guggenheim CIO unter Beschuss wegen des Zeitpunkts seiner sich ändernden BTC-Stimmung

Der CIO von Guggenheim steht in den sozialen Medien unter Beschuss, weil er unterschiedliche Ansichten zu Bitcoin geäußert hat, anscheinend auf beiden Seiten einer großen Investition.

Der offensichtliche Wechsel von Guggenheim-CIO Scott Minerd von bullisch zu bärisch und wieder zurück zu beiden Seiten einer SEC-Anmeldung im Zusammenhang mit einer Investition von einer halben Milliarde Dollar in BTC hat in den sozialen Medien die Augenbrauen hochgezogen.

Die Beobachtung wurde gemacht, nachdem am 31. Januar ungefähr 500 Millionen US-Dollar an BTC von Coinbase in eine Reihe privater Geldbörsen verschoben wurden, was einem Betrag und einem Datum des Inkrafttretens in einer SEC- Einreichung des Guggenheim Funds Trust entspricht.

Vor der Einreichung machte Bitcoin Investor am 21. Januar Schlagzeilen, als er BTC darauf hinwies, dass ein „vollständiges Retracement zurück auf das Niveau von 20.000“ zu erwarten sei und dass es unwahrscheinlich sei, dass es vor 2022 einen höheren Kurs erreichen würde .

In einem Interview mit Bloomberg Television am 27. Januar sagte er, dass die institutionelle Nachfrage nach Bitcoin nicht hoch genug sei , um sie über 30.000 USD zu halten

Aber seit dem 31. Januar hat Minerd seine High-End-Preisschätzung für Bitcoin erheblich erweitert und behauptet, dass es in einem Interview mit CNN am Dienstag aufgrund seiner Knappheit und des Goldwerts das Potenzial haben könnte, 600.000 US-Dollar zu erreichen . Dies lag an seiner Schätzung vom Dezember, die auf Untersuchungen und Analysen von Guggenheim Partners beruhte und ergab, dass der faire Preis von Bitcoin langfristig bei rund 400.000 US-Dollar liegt .

Viele glaubten, dass sie eine große Diskrepanz in der öffentlich ausgestrahlten Stimmung erlebten, die Guggenheim bewusst zugute gekommen sein könnte, und gingen zu Twitter und Reddit, um Minerds scheinbar gegensätzliche Aussagen sowie ihren Zeitpunkt und ihre Bedeutung hervorzuheben .

Einige bezeichneten es als Manipulation und andere als „ FUD “, obwohl es keine Beweise dafür gibt, dass Minerd nicht einfach auf sich schnell bewegende Ereignisse auf den Kryptowährungsmärkten reagiert

„Ich habe das die ganze Zeit gesagt“, sagte Benutzer Asher68W auf Twitter. „Guggenheim hat im Dezember mit dem Kauf von Bitcoin begonnen. „Als der Preis im Januar stieg, hat Minerd BTC in den Medien vernichtet, um den Preis bis zum Ende des Kaufs niedrig zu halten.“

Guggenheim Partners, ein Finanzdienstleistungsunternehmen im Wert von 275 Milliarden US-Dollar, traf die Entscheidung, öffentlich in Bitcoin zu investieren, mit der Einreichung einer SEC-Änderung im November 2020, in der 500 Millionen US-Dollar für eine Investition in den Grayscale Bitcoin Trust bereitgestellt werden sollten .

Eine Bitte um Stellungnahme von Guggenheim Investments, der globalen Vermögensverwaltungsabteilung von Guggenheim Partners, erhielt keine sofortige Antwort.