Despite current ongoing legal issues, major crypto exchange, Bitfinex took to its Twitter page today to announce the addition of three new stablecoin pairs on its exchange. Bitfinex tweeted –
The new pairs are however only available to verified users. This new listing, however, has not been met with much excitement by the crypto community for obvious reasons.
Bitfinex’s Legal Problems with the NYAG
The crypto exchange which is affiliated with highly controversial digital currency, Tether, ran into problems with the office of the New York Attorney General in April after they could not explain an alleged loss of $850million. The NYAG further alleged that the exchange used funds from the stablecoin, Tether to cover up the loss. The exchange immediately denied the allegation, saying that some of its funds were seized in Poland, the US, and Portugal.
They, however, went ahead to launch a new token – LEO and host a private sale where they claim they were able to raise $1 billion worth of USDT within 10 days. The token’s whitepaper claimed that the recovered funds will be used to repurchase and burn outstanding LEO tokens.
After a drawn-out legal battle since April which involved the exchange trying unsuccessfully to block its New York users from using the platform, a New York Supreme Court Judge in August ruled in favor of the NYAG and ordered Bitfinex to provide all relevant requested documents to the NYAG.
Controversial LEO Token Sale
The current move to add new stablecoins to the exchange has not been met with open arms by the crypto community as they immediately raised questions in the comment section of the Twitter post announcing the addition of the new stable coins.
Many of the users expressed skepticism towards the move tagging it an exit Tether move. Others asked for updates on both the NYAG case and the status of the LEO tokens sales which were supposed to be used for restoring Tether. One user, bringing up the controversy around the purported $1billion LEO sale, said –
Another asked –
However, despite the troubles its parent company is currently facing, it appears Tether’s capacity is growing as it is reportedly responsible for the Ethereum Network being “almost full”.
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Victoria is a Nigerian journalist and entrepreneur with a background in Communications. She’s interested in writing about Cryptocurrency, Blockchain and Humans. She owns a tad bit of BTC and ETH and her favorite thing to do is sit by the ocean listening to Beyoncé. You can catch her on Twitter @veekietoria and LinkedIn or mail her at victoria [at] coingape.com