Produced by Odaily

Text | Suixin

Editor | Lu Xiaoming

Produced by Odaily

Text | Suixin

Editor | Lu XiaomingAfter the court prohibited Bitfinex from misappropriating USDT funds to cover its 850 million losses, some users responded by fleeing from Bitfinex.Official documents show that since the ban was issued, Bitfinex customers have withdrawn at least 30,000 Bitcoin (BTC) and 1 million Ethereum (ETH), with a total market value of more than $340 million.

Zhao Dong said

, Bitfinex IEO currently has subscription intentions of US$600-700 million.

The opposite phenomenon seems to indicate that the market's trust in Bitfinex is polarizing.secondary titleAccused of misappropriating funds by New York authorities, has been stopped from borrowing money from USDT

lawsuitPress releasePress release

according towall street journal, New York Attorney General Letitia James revealed that he has obtained a court order to sue iFinex Inc. (Bitfinex parent company), requiring it to stop violating New York laws and defrauding New York residents.

wall street journalAnnounceAccording to reports, the court order requires Bitfinex to stop transferring funds from Tether's reserves to Bitfinex's bank accounts, prohibit Bitfinex from borrowing from Tether, stop paying any dividends or other dividends to executives, and hand over documents and information.

Subsequently, BitfinexAnnounceThe response said the New York Attorney General's court filing was maliciously written and riddled with false assertions, including an alleged $850 million "loss" at Crypto Capital. Instead, we have been told that these crypto capital amounts were not lost, but were actually seized and secured. The announcement also stated that Bitfinex is working hard to release these funds, and that both Bitfinex and Tether are in good financial condition.

Reddit user GooseG17 posted the email

, read in part: "In fact, until yesterday, we had been cooperating fully with New York authorities' investigations into our business.  … Allegations that we 'lost' $850 million, etc. are absolutely false. We are actively working to enforce our rights and remedies to unfreeze these funds. We are confident that we can make a clear, consistent and convincing case for the recovery of these funds. Rest assured that we will make a strong case against the false assertions made by the Office of the New York Attorney General in its filing question."

James said that Bitfinex’s $850 million investigation into the loss of funds began in 2018, when the company handed over $850 million of customer and corporate funds to Crypto Capital to process customers’ withdrawal requests. But in the following months, Crypto Capital failed to process these requests from Bitfinex, because the funds were frozen in several different banks in Portugal, Poland, and the United States. clear.

secondary title

The user switches to hard currency and exits the exchangeObviously, judging from the follow-up reaction, some users do not believe in Bitfinex's financial situation.

Although USDT suffered a sharp drop, it is still strong. On the contrary, Bitfinex's Bitcoin and ETH are a little uneasy.

Recently, the lawyers of the cryptocurrency exchange Bitfinex released documents stating that

, Since the ban was issued, Bitfinex customers have withdrawn at least 30,000 Bitcoin (BTC) and 1 million Ethereum (ETH), with a total market value of more than 340 million US dollars, which has had a "significant" impact on the exchange. Within an hour of the April 24 ban, dozens of cryptocurrencies lost $10 billion in combined market value. Several lawyers believe that the injunction will cause great confusion for Bitfinex and Tether, the USDT issuer, and ultimately hurt all cryptocurrency market participants that the New York State Attorney General is supposed to represent.As strange as it sounds, it is BTC and ETH that are affected, not the protagonist USDT.。

In this regard, Cryptopotato believes that the best explanation comes from the previous analysis of Jeff Garzik, the co-founder of Bloq: "This is an exit purchase. If you want to exit the exchange, when the fiat currency withdrawal method starts to fail, people must buy 'hard currency' ——BTC. Therefore, on dying exchanges, the price of BTC is higher. We have seen this data pattern many times in the past encryption history, including but not limited to the Mentougou exchange.” Cryptopotato article analysis said, Given all of Bitfinex's dubious activity, any reasonable investor would be happy to pay a small premium to get their money from the exchange.

There is actually a real premium to the price of Bitcoin on Bitfinex right now, with Bitcoin trading at around $5,766 on Coinbase Pro and Bitstamp, compared to around $6,100 on Bitfinex. There is a premium of more than 5%. Due to the high premium of Bitfinex's BTC, the CoinMarketCap website has excluded Bitfinex's BTC price data. After the incident,Bitfinex’s Bitcoin quote is at a discount to Binance’s price for the first time since the beginning of the yearLongHash also said that Bitfinex’s abnormal price may be due to the uncertainty of the exchange’s solvency caused by various inferences in recent media reports, and traders just want to be cautious about where they store their funds.

Civic CEO Vinny Lingham likened the premium to the one that occurred at Mt. Gox back then.: "Does anyone remember when Mt. Gox started to form a market premium? It was really a good past." It is reported that the so-called "good past" refers to the early stage from July 2013 to January 2014. During this period, the Mt. Gox premium was above 10%. While the prices were rosy during that time, the theft happened later, and the bear market lasted for a year after that.

according toBloomberg analysis says, then if authorities find any evidence of wrongdoing at the Tether company, or if traders lose confidence in the company's ability to exchange 1 tether for 1 dollar, USDT could quickly lose value.Krakenaccording to

Diar latest reportTether, currently a controversial stablecoin, has had its reserves slashed by 26% following recent negative news, barely maintaining its expected dollar peg.However, the current price of USDT is still close to $1.

According to data from OpenMarketCap

, the price of USDT plummeted from $1 to less than $0.97 after the New York Attorney General's Office released an initial report on its investigative actions. It almost recovered to the anchor price of $1 on May 1. The current price has dropped to around $0.99 again. Previously, TokenInsight analyzed that negative news on stablecoins caused USDT to drop the most on the day in nearly half a year, but OTC net outflows only dropped slightly.

secondary titleOn the other side: the issuance of platform currency has raised more than 600 million U.S. dollarsSome users fled Bitfinex, while others bought its platform currency.

After the incident, Bitfinex responded quickly and prepared to release the platform currency LEO to deal with the crisis. Today’s news, one of Bitfinex’s shareholders

Zhao Dong said

, Bitfinex IEO currently has subscription intentions of US$600-700 million. But for ordinary investors, each person can only pre-order up to $1,000 through Renrenbit. At the same time, he said that he could not determine whether there will be a public offering.On April 28, Zhao Dong suggested on Weibo that Bitfinex release platform tokens to raise the frozen USD 850 million. On the 30th, there was news that Bitfinex will issue coins, and Zhao Dong confirmed the news:Bitfinex's Token will be a mixture of BNB and BFX creditor's rights Token, that is, in addition to referring to the logic of BNB, Bitfinex will use the full amount of unfrozen funds to repurchase and destroy the Token in the future. The total amount is 1 billion, and a Token is 1 USD. Currently, 500 million USD has been subscribed. Later, it also revealed that the Token name is LEO.Soon, on the morning of May 4th, it was done. According to Bitfinex shareholdersZhao Dong posted on Weibo to refute rumors that, the Token name is LEO, and USDT is accepted for fundraising instead of BTC and ETH.

Then its

on weibo

Published the "Bitfinex IEO White Paper (Draft)" authorized to DGroup.

The white paper shows that the total amount of LEO is 1 billion, which is issued globally and has a repurchase and destruction mechanism. The repurchase cycle is based on a monthly basis, using X% of the previous month’s income to repurchase LEO according to the market price at that time, X is not less than 27, and there is no deadline; Return trigger destruction method" two events will trigger destruction.In addition, LEO also acts as the platform currency of several cryptocurrency exchanges under IFinex, and currency holders can enjoy privileges such as transaction fees, lending fees, cash withdrawal and recharge fees; the Bitfinex team does not hold LEO, all of which are allocated to investors.However, the sale of LEO is not a public sale, but a private placement. The private sale is only for those who have received the IEO white paper, and the public sale will only be carried out when the private sale is insufficient and there are still token shares left. This also means that most investors may miss out on LEO.Fundstrat Co-Founder, heard that Bitfinex's LEO was oversubscribed... reaffirming our feeling that Bitfinex has earned the trust of its customers... and generally applauding them. Previously, Bitfinex was about to conduct an IEO worth 1 billion US dollars,

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