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.
— 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.
- 1,580 BTC worth $8.2 million transferred from Bitfinex to unknown wallet
- 13,377 BTC worth $70.3 million transferred from Bitfinex to unknown wallet
- 3,999 BTC worth $20.6 transferred from Bitfinex to unknown wallet
- 14,666 ETH worth $2.2 million transferred from Bitfinex to unknown wallet
- 14,318 ETH worth $2.2 million transferred from Bitfinex to unknown wallet
- 123,687 ETH worth $19.0 million transferred from Bitfinex to unknown wallet
- 121,496 ETH worth $18.7 million transferred from Bitfinex to unknown wallet
- 187,253 ETH worth $28.8 million transferred from Bitfinex to unknown wallet
- 25,444 ETH worth $3.9 million transferred from Bitfinex to unknown wallet
- 7,137,903 XRP worth $2.0 million transferred from Bitfinex to unknown wallet
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.