Bitfinex and Tether (USDT) missing $850 Million!

Did you notice that sudden price drop of Bitcoin last night? We sure did, and our team had to find out what's going on.

Allegedly the Hong Kong crypto exchange Bitfinex has last $850 Million according to The New York Attorney General’s office. Subsequently, user funds from the affiliated stablecoin Tether (USDT) have been spend to cover the loss.

There’s a court order issued ordering them to cease violating New York law and defrauding New York residents, according to a press release.

Official statement:

 “New York state has led the way in requiring virtual currency businesses to operate according to the law. And we will continue to stand-up for investors and seek justice on their behalf when misled or cheated by any of these companies.”

$850 million of user funds were send to Crypto Capital corp by Bitfinex.  

Funds from Tether’s reserve were used to cover it the short coming. However, neither the loss or the movement of USDT were disclosed to the customers of bfx.

So far, $700 million is alleged to have been transferred.

Coindesk covered an elaborate story about it, which you can find here.

The full video of Nugget’s news, by Alex Saunders can be found on his popular Youtube channel.

We’ve stated it many times before, don’t store your precious earned Bitcoin on exchanges. After previous hacks of Cryptopia or the mysterious disappearance of the QuadrigaCX’s founder it’s safe to say to store you coins in your personal wallets.

With the sudden drop of the BTC price, it’s time to go back to collecting airdrops to claim more free tokens.