The news that Bitfinex is being alleged and charged by the New York Attorney General’s office of possibly using reserved $850 million in Tether to cover up some losses has generated widespread criticism and panic, resulting in people doubting the superiority of Tether stablecoin.
The movement of Bitcoin from Bitfinex to other exchanges has resulted in more panic, showing people do not trust the exchange and Tether. The ongoing ruckus in the cryptocurrency space has resulted in diverse commentary from bigwigs in the industry.
One of those who see the attack as a blessing is CNBC crypto analyst Ran NeuNer. The prominent crypto analyst said the clamp down on Bitfinex is good for the cryptocurrency market, saying the lawsuit by the New York Attorney General against Bitfinex is part of the crypto clean up.
He said: “I think the move by the NYC attorney general against Bitfinex is a good thing for the ecosystem. We need bad players and frauds to be taken on by legislators and we may even need strong regulation to get real money into the ecosystem. This is part of the cleanup.”
Analyst NeuNer also said the response of the cryptocurrency market to the present situation confirmed that we are in a bull run
He said: “Further confirmation that we are in a bull market;
- The market is responding to news again.
- The market bounces very quickly. The bulls are firmly in control.”
Is JP Morgan Coin behind the Bitfinex Attack and Lawsuit?
Ran NeuNer is certain and willing to bet that JP Morgan Coin has something to do with the attack and lawsuit, saying the newly launched banking currency has a lot to gain in the clamp down.
While NeuNer did not explain his allegations further, it is clear that JPM Coin is a B2B product that may not even be available to its end users considering the way the bank designed the digital asset.
NeuNer: “I’m willing to bet that JP Morgan coin has something to do with this attack and lawsuit. They have a lot to gain here.”
Bitfinex Exchange Saga
Earlier this week, the crypto market saw a bullish run as most major digital currencies experienced surge in market price, although the joy got cut short suddenly due to the unexpected event that is affecting Tether and Bitfinex exchange.
The top 10 cryptocurrencies that experienced the obvious drop in price were Bitcoin (BTC), Litecoin [LTC], Ripple’s XRP, Stellar Lumens (XLM), Cardano (ADA), EOS.
The bear experienced in the crypto market was attributed to the recent Bitfinex exchange and Tether’s face-off. The incident happened after the office of New York State’s Attorney General revealed that iFinex, the company that controls Bitfinex exchange may be contravening New York Law, which probably related to the activities that have left local investors who trade in cryptocurrencies parting with their hard earned assets.
New York Attorney General, Letitia James, claimed that the Bitfinex exchange masked $850 million it lost with USDT. Before Bitfinex could deny the allegation, the damage had gone far as at least 89 million dollars of BTC and more than 650,000 ETH, which is approximately 99 million dollars at press time has already been withdrawn from the embattled exchange.
The entire cryptocurrency sphere should be ready to share the consequence of the incident as this is expected to have negative impact on the price of almost all the major cryptocurrencies especially Bitcoin (BTC) that sets the pace in the crypto market.