{"id":12918,"date":"2019-04-25T22:07:44","date_gmt":"2019-04-25T22:07:44","guid":{"rendered":"https:\/\/davidgerard.co.uk\/blockchain\/?p=12918"},"modified":"2019-04-25T22:57:06","modified_gmt":"2019-04-25T22:57:06","slug":"quick-update-new-york-attorney-general-sues-bitfinex-850m-hole-in-tether-reserves","status":"publish","type":"post","link":"https:\/\/davidgerard.co.uk\/blockchain\/2019\/04\/25\/quick-update-new-york-attorney-general-sues-bitfinex-850m-hole-in-tether-reserves\/","title":{"rendered":"Quick update: New York attorney general sues Bitfinex, $850m hole in Tether reserves"},"content":{"rendered":"<div class=\"s1uvpiw0-0 gbImiw oxmkdz-0 DICHK\" data-tag=\"post-content\">\n<p>I just added this paragraph to the <a href=\"https:\/\/davidgerard.co.uk\/blockchain\/2019\/04\/25\/news-quadriga-ponzis-exchange-volumes-no-institutional-investors-petro-on-sale-and-the-football\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">news post<\/a> I put up a couple of hours ago, and I thought I&#8217;d update the email subscribers specially:<\/p>\n<blockquote><p><strong>UPDATE: <\/strong>The <a href=\"https:\/\/www.wsj.com\/articles\/bitfinex-used-tether-reserves-to-mask-missing-850-million-probe-finds-11556227031\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Wall Street Journal<\/a> and <a href=\"https:\/\/www.theblockcrypto.com\/2019\/04\/25\/ny-attorney-general-sues-bitfinex-and-tether\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">The Block<\/a> posted, two hours after I posted this newsletter \u2014 the New York Attorney General is suing Bitfinex. <a href=\"https:\/\/iapps.courts.state.ny.us\/fbem\/DocumentDisplayServlet?documentId=vIexA1b0spKOnK_PLUS_ZUGTJ3A==&amp;system=prod\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Here&#8217;s the document<\/a> (PDF). Also, there&#8217;s an $850 million hole in the Tether reserves \u2014 Bitfinex may have taken money from the reserves to \u201ccover up $850 million that went missing,\u201d \u201cAccording to documents provided to OAG by Respondents, by 2018, Bitfinex had paced over one billion dollars of co-mingled customer and corporate funds with Crypto Capital.\u201d Bitcoin&#8217;s price dropped $200 as I type this, 22:03 UTC 25 April.<\/p><\/blockquote>\n<p>If I didn&#8217;t have to go to sleep shortly, I&#8217;d be spending the next few hours poring over the document &#8230;<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/davidgerard.co.uk\/blockchain\/2019\/04\/25\/quick-update-new-york-attorney-general-sues-bitfinex-850m-hole-in-tether-reserves\/screenshot_2019-04-25_23-12-47\/\" rel=\"attachment wp-att-12920\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-12920\" src=\"https:\/\/davidgerard.co.uk\/blockchain\/wp-content\/uploads\/2019\/04\/Screenshot_2019-04-25_23-12-47.png\" alt=\"\" width=\"675\" height=\"267\" srcset=\"https:\/\/davidgerard.co.uk\/blockchain\/wp-content\/uploads\/2019\/04\/Screenshot_2019-04-25_23-12-47.png 675w, https:\/\/davidgerard.co.uk\/blockchain\/wp-content\/uploads\/2019\/04\/Screenshot_2019-04-25_23-12-47-300x119.png 300w, https:\/\/davidgerard.co.uk\/blockchain\/wp-content\/uploads\/2019\/04\/Screenshot_2019-04-25_23-12-47-672x267.png 672w\" sizes=\"auto, (max-width: 675px) 100vw, 675px\" \/><\/a><small><em>Coinbase BTC-USD, times in BST (UTC+1). Looks like the crypto market does respond to signals after all.<\/em><\/small><\/p>\n<\/div>\n<br><br><div align=\"center\"><p><a href=\"https:\/\/www.patreon.com\/bePatron?u=8420236\"><img src=\"https:\/\/davidgerard.co.uk\/blockchain\/wp-content\/uploads\/2021\/10\/become_a_patron_button.svg\" alt=\"Become a Patron!\" title=\"Become a Patron!\" width=217 height=51><\/a><br><p style=\"align:center;\" class=\"patreon-badge\"><i>Your subscriptions keep this site going. <a href=\"https:\/\/www.patreon.com\/bePatron?u=8420236\">Sign up today!<\/a><\/i><\/p><\/div>","protected":false},"excerpt":{"rendered":"<p>The good news for Bitcoin never stops!<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[38,594,39],"class_list":["post-12918","post","type-post","status-publish","format-standard","hentry","category-uncategorised","tag-bitfinex","tag-new-york","tag-tether"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/posts\/12918","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/comments?post=12918"}],"version-history":[{"count":4,"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/posts\/12918\/revisions"}],"predecessor-version":[{"id":12926,"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/posts\/12918\/revisions\/12926"}],"wp:attachment":[{"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/media?parent=12918"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/categories?post=12918"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/tags?post=12918"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}