Bitfinex Withdraws $89 Million From Cold Wallet, Is It A Sign Of Trouble
Cryptocurrency exchange Bitfinex was drawn under serious allegations when the New York Attorney General’s office claimed the exchange of using funds from affiliated stablecoin operator Tether in order to secretly cover its alleged loss of $850 million. According to a report from cryptocurrency news outlet The Block on April 26, Bitfinex withdrew funds worth almost $90 million from its cold wallet.
The platform has chosen not to publicly explain the reasons behind the said withdrawals, leading to the fresh debacle over potentially missing funds. Reportedly, Bitfinex has moved large amounts of bitcoin (BTC) and ether (ETH) from its wallets to unknown addresses over the past 12 hours.
In addition, smaller amounts of other coins such as makerdao (MKR) was also transferred as, revealed by online transaction monitoring resource Whale Alert.
— Whale Alert (@whale_alert) April 26, 2019
As reported yesterday, the platform which has the same owner as USD stablecoin Tether (USDT) has been reportedly using funds from affiliated stablecoin operator Tether in order to secretly cover its alleged loss of $850 million, as claimed by the New York Attorney General’s office in an announcement published on April 25.
Bitfinex has already publicly renounced the accusations, stating in a blog post that both its platform and Tether are financially sound. Spermed from an agreement Bitfinex made with payment gateway Crypto Capital Corp. in 2018, that entitled the third party to handle user withdrawals. However, it appeared that to hold the funds, with Bitfinex still to retrieve them. A statement released Friday reads:
“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.”
The coinciding of the latest withdrawals with the users signaling that they have started to take funds out of Bitfinex as a safeguarding procedure, including the United Kingdom-based entrepreneur Alistair Milne, who withdrew an unspecified sum worth at least $1 million.
Our withdrawal of >$million of Bitcoin from Bitfinex was completed (with three confirmations) in <90minutes
— Alistair Milne (@alistairmilne) April 26, 2019
Image Source: Stock Photo Secrets
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