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Crypto Traders Pull $175 Million in Bitcoin, XRP and Ethereum Out of Bitfinex, NYAG Says Exchange Feared BTC Plunge Below $1,000

April 26, 2019

In the past 24 hours, crypto traders have pulled $175 million worth of Bitcoin, Ethereum and XRP out of the crypto exchange Bitfinex.

Whale watchers are tracking a series of crypto transfers from the exchange to unknown wallets following a series of accusations levied against Bitfinex and Tether by New York’s Attorney General Letitia James. The biggest single transfer so far is a total of 13,377 BTC worth more than $70 million sent out of the exchange in a single transfer.

? ? ? ? ? ? ? 13,377 #BTC (70,350,098 USD) transferred from #Bitfinex to unknown wallet

Tx: https://t.co/giyoVxsISd

— Whale Alert (@whale_alert) April 26, 2019

Here’s a look at all of the whale migrations from the exchange in the last 24 hours.

According to a 23-page report released by Attorney General James, Bitfinex lost access to $850 million held by a payment processor in Panama. Instead of alerting the public to the issue, Bitfinex allegedly used cash reserves backing the stablecoin Tether to satisfy customers who were trying to withdraw fiat from the exchange.

The report says leaders at Bitfinex panicked when the company became unable to withdraw funds from a company called Crypto Capital, with a senior executive telling the external payments partner that the issue could have a dramatic impact on the crypto market at large.

“Please understand all this could be extremely dangerous for everybody, the entire crypto community. BTC could tank to below 1k if we don’t act quickly.”

Tether has strongly denied all accusations from the NYAG. In a statement, the company says the report is “riddled with false assertions.”

“The New York Attorney General’s court filings were written in bad faith and are riddled with false assertions, including as to a purported $850 million ‘loss’ at Crypto Capital.

On the contrary, we have been informed that these Crypto Capital amounts are not lost but have been, in fact, seized and safeguarded. We are and have been actively working to exercise our rights and remedies and get those funds released.”

The NYAG is demanding Bitfinex and Tether cease operations in New York. Neither company has a BitLicense, which is required to operate in the state.

While representatives from Tether and Bitfinex say that the companies are separate entities, reports claim that Bitfinex officials Philip Potter and Giancarlo Devasini established Tether Holdings Limited in the British Virgin Islands in 2014.

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.