Tech News, Magazine & Review WordPress Theme 2017
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • CRYPTO LIVEWIRE
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • EXPLORE
    • eToro
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • CRYPTO LIVEWIRE
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • EXPLORE
    • eToro
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

Mysterious Bob, the Market Bears and the Bitfinex-Tether-Bitcoin Manipulation Scheme

by Daily Hodl Staff
December 7, 2017
in Bitcoin
‏‏‎ ‏‏‎ ‏‏‎ ‏‏‎
‎‎‎ ‏‏‎

Seeking Alpha posted a link to a mysterious email from an anonymous Bob who claims to lay out the complexities of a scheme to keep Bitcoin’s price soaring into the stratosphere.

Alleged price manipulation of the cryptocurrency involves Bitfinex, a seemingly insolvent exchange, and Tether Limited (aka The Federal Reserve Bank of Tether), which issues USDT digital coins that are allegedly redeemable on a one-to-one ratio for US dollars.

Per Bob’s email, “As a company, Tether’s USDTs enables large crypto-currency exchanges (including US-based exchanges like Poloniex) to exist and powers trades thereon in the amount of millions every day.  So it wouldn’t be surprising if FinCEN eventually decides to enforce its rules against Tether as it did against Liberty Reserve.”

Liberty Reserve claimed itself to be the “oldest, safest and most popular payment processor, serving millions all around a world”. Founded in 2006, it was a centralized digital currency service based in Costa Rica until it was shut down by the US government in May 2013 for alleged criminal activity.

Shuttered under the Patriot Act, Liberty Reserve instigated a global investigation that spanned 17 countries and turned up more than $6 billion in criminal proceeds facilitated by the company’s tokens (Liberty dollars). Its founder Arthur Budovsky along with six colleagues were ultimately charged with money laundering and operating an unlicensed financial transaction company.

The Bitcoin bears echo a similar theory – that there is evidence of Bitcoin’s looming fall predicated on the ripple effect Tether has had across all Bitcoin markets by allowing coin-to-coin trades and by keeping Bitcoin afloat when its market cap would otherwise plunge. Tether remains unregulated as its supply continues to grow. Not surprisingly, its market cap and recent surges mirror those of Bitcoin.

Bob’s last note:

“I therefore urge you to consider the possibility that the current price of Bitcoin is the result of Bitfinex’s manipulation and may collapse when regulators take action.”

Another note:

The relationship between Bitfinex and Tether is close. Tether Limited is owned and operated by the owners and operators of Bitfinex. Trading on exchanges such as Gemini that do not tap into the swirling supply of Tether can create some layer of protection against the most wild and unregulated in the crypto markets, but can’t create a complete shield, since Bitcoin’s value represents price action across multiple platforms and exchanges.

ADVERTISEMENT


Check Latest News Headlines


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 loses 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.
Submit a Press Release

Crypto Livewire – Press Releases

  • Bitsgap Launches Intuitive Combo AI Bot for Futures Trading
    April 21, 2021
  • eToro Adds Chainlink and Uniswap Amid Investor Surge for Crypto
    April 19, 2021
  • TeraBlock Secures $2.4 Million to Build a Newbie-Friendly Crypto Exchange Powered by Machine Learning
    April 19, 2021
  • BlockSwap Network Announces Balancer LBP and Uniswap LP Incentive
    April 19, 2021
  • Raze Network Completes Triple IDO and Balancer LBP Event
    April 19, 2021
  • First Charity Project Using NFT: All Profits From Sales of Content Produced by Miss Bitcoin To Be Donated
    April 15, 2021
  • MakiSwap Raises $1.4M From Leading Investors to Build AMM Platform on Huobi Eco Chain
    April 14, 2021
Submit a Guest Post
ADVERTISEMENT
ADVERTISEMENT
Bitcoin
$54,968.00
$54,968.00
3.5%
Ethereum
$2,407.69
$2,407.69
4.08%
Binance Coin
$561.98
$561.98
1.83%
XRP
$1.35
$1.35
6.05%
Polkadot
$35.61
$35.61
1.33%
Cardano
$1.24
$1.24
2.13%

Spotlight

  • Whale Moves $603,001,756 in Bitcoin in Single Transaction – Here’s Where the Funds Are Headed
    April 17, 2021
  • Strong Hands Buying Massive Bitcoin Dip, Says On-Chain Analyst Willy Woo
    April 20, 2021
  • Crypto Trader Ben Armstrong Is Buying $100,000 Worth of This Red-Hot Altcoin
    April 14, 2021
  • Longtime Bitcoin Skeptic Ray Dalio Recommends Allocating 20% of Portfolio to BTC: Report
    April 18, 2021

DON’T MISS A BEAT

Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options

By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.

Check your inbox for confirmation email.

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX • Explore • Futuremash •
Crypto Livewire

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2021 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • CRYPTO LIVEWIRE
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • EXPLORE
    • eToro
  • DAILY HODL MIX

© 2020 The Daily Hodl

×