‘Trustworthy’ Bitcoin Exchange That Hid $850 Million Loss Raises $1 Billion
By CCN: Bitfinex CTO Paolo Ardoino told Twitter that the firm was able to raise $1 billion in USDT within a short period because big investors know Bitfinex is “trustworthy.”
Trust, Don’t Verify
The New York Attorney General’s office recently opened a very public investigation into the firm. They allege much to the contrary. Tether Limited subsequently admitted it only has 74% of the reserves for its more than $2 billion stablecoins in circulations.
. @bitfinex is able to raise 1b USDt in 10 days, in a private sale. Private companies, giants in our industry and outside, made investments for > 100m each. A legion of inside and outside users made investments for > 1m each.
— Paolo Ardoino (@paoloardoino) May 13, 2019
Why? Because they know we are trustworthy, they recognize what we have been doing (without needing us bragging about it publicly) and they want us keep fighting for the industry whole. Their own words.
Thank you everyone for the amazing support we got. We are impressed. $LEO— Paolo Ardoino (@paoloardoino) May 13, 2019
You read all of that right. Ardoino didn’t mean “cringeworthy” though you may read that on first glance if you’re of a particular mind.
Bitfinex is one of the earliest exchanges to offer fiat on-ramps, and for a long time served as the only way to effectively off-load Tether (USDT) for bank wires. That situation morphed last year when Bitfinex announced “Tether neutrality.” Translation: it began listing other stablecoins, including PAX and USDC.
In response, Tether announced a change in its withdrawal fee structure.
