Bitfinex, the world's largest bitcoin exchange by daily trading volume, has promised to continue criticizing, including including the anonymous blogger Bitfinex & # 39; ed. "
<img alt=" Bitfinex accounts for more than 12% of global Bitcoin transactions" src = "https://cointelegraph.com/storage/uploads/view/0034270266151df7e65b1212b6c4e16c.png" title = "Bitfinex Accounts for more of 12 Percentage of global Bitcoin transactions "/> Stuard Hoegner, Bitfinex internal counsel, stated:
" To date, every claim made by these bad actors has been patently false and made simply to Shake the cryptocurrency ecosystem.As a result, Bitfinex has decided to assert all its rights and legal remedies against this agitator and its associates. "
Kyle Samani, a partner at Multicoin Capital, said that Bitfinex had made a critical mistake in filing a lawsuit against Bitfinex's and other "bad" potential players in the cryptocurrency space.
In recent months, the involvement of Bitfinex with Tether, the US dollar backed cryptocurrency, was questioned, given that an audit Third-party promises on the Tether USD reserve have never been made. Critics such as Bitfinex & Ed have claimed that all links issued are not backed by US dollars. Tether (the company) shares many of the same owners as Bitfinex.
Charlie Lee, the creator of Litecoin and former CEO at Coinbase, also asked Bitfinex to conduct a third-party audit on Tether, to put an end to the controversy.
It is feared that the recent price hike was favored by the impression of the USDT (Tether) that is not supported by the USD on a bank account.
@bitfinex and @Tether_to to perform a third party audit to prove their reserves. Please do the right thing. Thank you
– Charlie Lee [LTC] (@SatoshiLite) November 30, 2017
A third party audit would be beneficial for Bitfinex and the cryptocurrency industry, as it would calm many investors who fear that Bitcoin the price is handled. It would also reassure the holders of Tether that the cryptocurrency is backed by a reserve in USD
However, as noted by Samani, instead of performing a third-party audit, Bitfinex chose to pursue its detractors.
As a crypto exchange, when you are accused of being a fraud, you have 2 choices:
1) Produce bulletproof audits and * demonstrate * (not just say) a commitment to transparency
2) threaten your accuser of dispute @ bitfinex chose # 2
Bravo @ Bitfinexed.https: //t.co/ YCfaKQSjAE
– Kyle Samani (@KyleSamani) December 5, 2017
Several analysts and experts have recently questioned Tether's reserve in USD. Tim Swanson, the founder of OfNumbers and a risk analyst for Blockchain companies, said that a serious problem could emerge in the short term if Tether is not supported by the USD by a ratio of 1: 1.
"Is there anything that supports this, if they are not backed 1-to-1, what is the risk of contagion if any of these trade drops? "
Since Bitfinex remains the largest cryptocurrency exchange on the world market. Tether has evolved into a cryptocurrency of $ 813 million, Bitfinex and Tether should conduct a third-party verification to prove their creditworthiness in the coming months. Failure to do so will continue to ignite more controversy within the global cryptocurrency community, which is not beneficial for any of the parties involved.
Attacks on Bitfinex
On November 19, Bitfinex revealed that the exchange was targeted by a coordinated attack designed to disrupt the market. Bitfinex pointed out that fiat and cryptocurrency withdrawals are functioning normally, and that the exchange is solvent, after several inaccurate reports disseminated in online Bitcoin communities.
The company also encouraged the cryptocurrency market to ask for evidence. any conclusion concerning the insolvency of Bitfinex
Bitfinex is solvent and the fiat and crypto withdrawals function normally. We see more and more FUD which we think is a coordinated attack to create a market disrupting event 1/2
– Bitfinex (@bitfinex) November 19, 2017
Currently, the position of the Bitfinex team is to defend the exchange and its trading platform against the "bad actors" in the cryptocurrency industry and inaccurate allegations.
Tether has already been criticized for claiming that his tokens were not money at all. The "legal" section of Tether's website states:
"Once you have Tether, you can trade them, keep them, or use them to pay people who will accept your Tether. However, Tether are not money and are not monetary instruments, nor are they stored in value or currency.There is no contractual right or other right or legal claim against We will exchange or exchange your Tether for money.We do not guarantee any right of redemption or exchange of Tether by us for money.There is no guarantee against losses when you buy, exchange, sell or trade Tethers. "
The company responded that it could not legally guarantee the repayment of the dollars, even though it had the intention to honor the redemption requests:
"Our conditio Service ns were carefully separated by various disgruntled and twisted to suggest that Tethers would not be exchangeable for currency on a bizarre and malicious whim by Tether. It's wrong. Although we reserve the right not to buy back for a particular client, as we should, we will not do it for no reason. We have a duty to try to ensure that our service is not used by people from sanctioned countries, who are otherwise on a sanction list, or who have a background check issue. In summary, redemptions will not be unreasonably withheld, but we reserve the right to selectively reject the redemption and creation of Tether on a case-by-case basis. "