• About Us
  • Privacy Policy
  • Contact Us
Newsletter
Kelscrypto
  • Home
  • Bitcoin
  • Ethereum
  • Cryptocurrency
    • Altcoin
    • Litecoin
  • Blockchain
  • Regulation
  • Market
  • Prices
  • Discord
No Result
View All Result
  • Home
  • Bitcoin
  • Ethereum
  • Cryptocurrency
    • Altcoin
    • Litecoin
  • Blockchain
  • Regulation
  • Market
  • Prices
  • Discord
No Result
View All Result
Kelscrypto
No Result
View All Result
Home Bitcoin

Bitcoin jumps $4,000 as Bitfinex and Tether settle with New York court

February 23, 2021
in Bitcoin
0
Bitcoin jumps $4,000 as Bitfinex and Tether settle with New York court
Share on FacebookShare on Twitter


A long-running case regarding Tether’s alleged fake dollars and Bitfinex’s involvement in covering up parts of the former’s business have drawn to a close today.

$18.5 million fine

Stablecoin issuer Tether and Bitfinex, a prominent crypto exchange and its parent company, have today settled with New York courts on a long-running case that saw the latter alleged Tether’s questionable reserves.

Bitfinex and Tether agree to pay over $18.5 million in a fine that effectively shut the case for good. The market, in turn, responded with positive sentiment to the landmark outcome and sent Bitcoin (and other cryptocurrencies) surging upwards.

If USDT was in trouble, it could send the entire crypto into a nuclear winter, because so much trading is denominated in USDT.

We no longer have to worry about this scenario. Up only.

And slap yourself if your had thought you had insider info and panic sold.

— Qiao Wang (@QwQiao) February 23, 2021

However, both Bitfinex and Tether are now barred from offering their services to any New York resident or citizen. “Today’s agreement requires Bitfinex and Tether to discontinue any trading activity with New Yorkers. In addition, these companies must submit regular reports to the OAG to ensure compliance with this prohibition,” the court document read.

As per a release by the New York court, Attorney General Letitia James noted that Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times were a lie. “These companies obscured the true risk investors faced and were operated by unlicensed and unregulated individuals and entities dealing in the darkest corners of the financial system,” she said.

James added that a previous investigation by the Office of the Attorney General (OAG) had concluded that Tether had no access to banking anywhere in the world and, hence, had no reserves in circulation “contrary to its representations” of having each Tether backed by a US dollar.

The investigation came after Bitfinex began to increasingly rely on third-party “payment processors” in the years after 2017 to handle customer deposits and withdrawals from its trading platform. 

However, in 2018, the exchange was said to have suffered a massive and undisclosed loss of funds because of its relationship with a Panama-based bank known as “Crypto Capital Corp”—a loss said to be to the tune of $850 million.

Tether celebrates; Bitcoin jumps

Tether, on its part, issued a statement noting that there was no finding that conclusively proved the firm ever issued USDT without backing or to impact crypto prices. “This settlement shows our commitment to the future of the industry, and to transparency with quarterly disclosures of Tether reserves going forward,” it said.

No finding that Tether ever issued without backing or to impact crypto prices. This settlement shows our commitment to the future of the industry, and to transparency with quarterly disclosures of @tether_to reserves going forward. 2/3

— Tether (@Tether_to) February 23, 2021

Meanwhile, the sentiment among both retail and professional crypto traders was overly positive. Kyle Davies, the co-founder of Singapore-based crypto hedge fund Three Arrows Capital said today, “The most significant existential threat to crypto has been lifted today.”

The most significant existential threat to crypto has been lifted today

— Kyle Davies (@kyled116) February 23, 2021

The news sent Bitcoin surging by over 5% by press time—a move of over $4,200 since a price plunge yesterday.

Bitcoin, currently ranked #1 by market cap, is down 8.33% over the past 24 hours. BTC has a market cap of $910.08B with a 24 hour volume of $114.46B.

Bitcoin Price Chart

BTCUSD Chart by TradingView

Like what you see? Subscribe for daily updates.





Source link

Tags: BitcoinBitfinexCourtjumpsSettleTetherYork
Share97Tweet61

Related Posts

Bitcoin Support at $47K “Very Strong,” Glassnode CTO Asserts After Price Falls

Bitcoin Support at $47K “Very Strong,” Glassnode CTO Asserts After Price Falls

March 5, 2021
0

Bitcoin has an extreme potential to hold $47,000 as its support level, according to Rafael Schultze-Kraft, the co-founder/CTO of...

Powell Comments Leaves Bitcoin Market Sour; Bearish Assault Ahead?

Powell Comments Leaves Bitcoin Market Sour; Bearish Assault Ahead?

March 5, 2021
0

A dayslong sell-off in the Bitcoin market intensified, and Treasury yields jumped Thursday, as Federal Reserve Chairman Jerome Powell...

How Laser Eyes Could Have Bitcoin Investors Seeing Red

How Laser Eyes Could Have Bitcoin Investors Seeing Red

March 4, 2021
0

Bitcoin price has been an uptrend for a full year now, taking the price of the cryptocurrency from under...

Bitcoin DeFi project Badger DAO diversifies its $21 million treasury

Bitcoin DeFi project Badger DAO diversifies its $21 million treasury

March 4, 2021
0

Badger DAO is one of the only Bitcoin-focussed DeFi products on the market and is expanding its ambitions.Forwards for...

More Rate Shocks for Bitcoin Ahead Despite Latest Price Rebound

More Rate Shocks for Bitcoin Ahead Despite Latest Price Rebound

March 4, 2021
0

Bitcoin traders should get used to facing more shocks from Treasury markets even as the cryptocurrency goes through a...

Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest
Huobi-Branded Crypto Exchange Launches for Malaysian Market

Huobi-Branded Crypto Exchange Launches for Malaysian Market

November 27, 2020
Despite losing $120M in a day, MicroStrategy is still up on its Bitcoin investment

Despite losing $120M in a day, MicroStrategy is still up on its Bitcoin investment

November 27, 2020
Yes, You Can Spend Your Bitcoin This Black Friday

Yes, You Can Spend Your Bitcoin This Black Friday

November 26, 2020
Bitcoin derivatives market hasn’t been this wrecked since the March crash

Bitcoin derivatives market hasn’t been this wrecked since the March crash

November 27, 2020
Bitcoin Support at $47K “Very Strong,” Glassnode CTO Asserts After Price Falls

Bitcoin Support at $47K “Very Strong,” Glassnode CTO Asserts After Price Falls

0
Australia and Singapore to Trial ‘Paperless’ Trade Using Blockchain Technology

Australia and Singapore to Trial ‘Paperless’ Trade Using Blockchain Technology

0
BitTorrent (BTT) Throws Another Jab at Filecoin (FIL)

BitTorrent (BTT) Throws Another Jab at Filecoin (FIL)

0
What makes the crypto market’s rise to $500 billion different from 2017?

What makes the crypto market’s rise to $500 billion different from 2017?

0
Bitcoin Support at $47K “Very Strong,” Glassnode CTO Asserts After Price Falls

Bitcoin Support at $47K “Very Strong,” Glassnode CTO Asserts After Price Falls

March 5, 2021
Powell Comments Leaves Bitcoin Market Sour; Bearish Assault Ahead?

Powell Comments Leaves Bitcoin Market Sour; Bearish Assault Ahead?

March 5, 2021
Bitcoin dips below $50,000 even as a “sell-side crisis” emerges

Bitcoin dips below $50,000 even as a “sell-side crisis” emerges

March 4, 2021
How Laser Eyes Could Have Bitcoin Investors Seeing Red

How Laser Eyes Could Have Bitcoin Investors Seeing Red

March 4, 2021

We have all the latest updated and legitimate information related to Blockchain, Cryptocurrency, latest market rates & trends, prices, new regulations along with every other thing that somehow related to crypto or digital currency market. Our main idea is to provide the kind of news that is original and at the same time, it can prove to be beneficial for our audience.

Categories

  • Altcoin
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Ethereum
  • Litecoin
  • Market
  • Regulation

Archives

  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020

Newsletter

  • About Us
  • Privacy Policy
  • Contact Us

© 2020 kelscrypto.com

No Result
View All Result
  • Home
  • Bitcoin
  • Ethereum
  • Cryptocurrency
    • Altcoin
    • Litecoin
  • Blockchain
  • Regulation
  • Market
  • Prices
  • Discord

© 2020 kelscrypto.com