Bitcoin’s recent fall in prices coincided with the re-examination of Tether and the Bitfinex exchange after both had received subpoenas from the US authorities almost a year earlier.
The authorities check tether and Bitfinex – accusation of manipulation
As Bloomberg reported on 20 November, Tether and Bitfinex, who have the same CEO, are under suspicion of market manipulation. Although no formal allegations have yet been made, the US Department of Justice (DoJ) is investigating the possible role of the constellation in the context of the Bitcoin all-time high of $20,000 in December 2017.
According to previously anonymous sources, prosecutors have „recently voiced suspicions that an intricate network of Bitcoin, Tether and the Bitfinex crypto exchange have been used to illegally move prices“;.
The Commodity Futures Trading Commission (CFTC) had originally summoned the two companies in January of this year, but a few months later they refused the request for freedom of information in order to clarify what exactly the regulator considered illegal. Since then, both companies (Tether and Bitfinex) have functioned as usual, although the community in particular is unsure whether the tether stocks are actually physically covered.
The Tether sales will be continued anyway
Meanwhile, managers have provided official responses to various allegations in recent months. Bitfinex remains persistent and claims that all rumours of misconduct are just malicious defamations. A few weeks ago, the rumour came to light that the company was no longer liquid. In addition, Bitfinex has raised the fees considerably so that you can keep up with PayPal on a cost level.
As Bitcoin lost more than 30 percent in value this week, the authorities‘; monitors have noted another mass transfer of tether, including a movement of 50 million tether on Tuesday from the Tether Treasury account at Bitfinex. In the past, the sale of freshly developed tokens led to a recovery in the Bitcoin price.