Robert-Jan Den Haan, a contributor to the Block who has been researching the Bitfinex/Tether situation for over a year, talks about how Bitfinex found itself without access to $850 million of its own money, how the trouble crypto companies have maintaining banking relationships played into that, and the company — or, rather, group of related companies — that is the source of its woes. We also cover where at least a portion of the money is now, and why it likely won't be made available soon, how a case involving Reginald Fowler and Ravid Yosef is related, and why Bitfinex will likely be conducting an initial exchange offering of $1 billion. Plus, we discuss why the price of Tether has barely budged despite being only 74% backed.
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Episode links:
Original story about NYAG court order against iFinex: https://www.coindesk.com/bitfinex-ny-prosecutors-tether-850-million-allege
Why at least part of the $850 million was seized (paywall):
https://www.theblockcrypto.com/2019/04/30/no-bitfinexs-seized-850-million-is-not-likely-to-be-unfrozen-within-weeks/
Original indictment revealing involvement of Reginald Fowler and Ravid Yosef: https://www.theblockcrypto.com/2019/05/01/indictment-reveals-new-clues-to-the-crypto-capital-situation/
Tether backed by 74% cash and cash equivalents:
https://www.coindesk.com/tether-lawyer-confirms-stablecoin-74-percent-backed-by-cash-and-equivalents
https://www.theblockcrypto.com/2019/04/30/bitfinex-reveals-stablecoin-is-only-74-backed-by-cash-says-its-simultaneously-addressing-requests-from-nyag-doj-and-cftc/
Bitfinex and Tether General Counsel Stuart Hoegner's statement to the NY Supreme Court regarding the OAG's preliminary injunction:
https://www.scribd.com/document/408190972/Stuart-Hoegner-Affidavit-4-30#from_embed
Indictment from Southern District of New York against Reginald Fowler and Ravid . Yosef: https://www.justice.gov/usao-sdny/press-release/file/1158991/download
Reginald Fowler's Master US Workbook and $345 million sitting in banks:
https://www.theblockcrypto.com/2019/05/02/us-government-requests-detention-for-defendant-at-center-of-bitfinex-imbroglio-describes-master-us-workbook/
https://www.coindesk.com/u-s-doj-moves-to-detain-defendant-in-crypto-shadow-banking-case
Reginald Fowler and Ravid Yosef charged with providing shadow banking services to cryptocurrency exchanges:
https://www.justice.gov/usao-sdny/pr/arizona-man-and-israeli-woman-charged-connection-providing-shadow-banking-services
Bitfinex's IEO: https://www.coindesk.com/bitfinex-is-planning-to-issue-an-exchange-token-shareholder-says
Already $500 million subscribed:
https://www.coindesk.com/bitfinex-shareholder-provides-more-details-about-potential-1-billion-token-sale
Absolutely hilarious satire on the whole saga: https://coinjazeera.news/federal-reserve-conspiracy-and-phil-potters-tether-scam/
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Alex Gladstein of the Human Rights Foundation on the First Crypto War - Ep.021
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Mike Novogratz on Why Incumbents Are Still Well Positioned to Participate in Crypto Finance - Ep.019
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How Meltem Demirors Uncovers True Value in Crypto Investments
Chris Burniske of Placeholder on the Downsides of ICOs
Ari Paul of BlockTower Capital on the Crypto Downturn and Why It Could Change Direction
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