Visiting a fairy tale of Bitfinex - FFC Media

Visiting a fairy tale of Bitfinex

«Greed is no crime», — that’s how the founders of the Bitfinex exchange think when they pour millions of USDT onto the exchange to manipulate the Bitcoin price. Bitfinex is a successful exchange, and USDT is the most popular stablecoin. What more to wish for? However, that is not enough for the money‐grubbing founders of Bitfinex and Tether.

The Tether coin (USDT trade ticker) appeared in 2014 to become an island of stability for those who are not satisfied with the price volatility of cryptocurrencies. USDT is a stablecoin, which is the class of cryptocurrency pegged to a stable asset. Tether is pegged to the US dollar.

In 2017, it became known that Tether and Bitfinex were founded by the same people: Philip Potter, Jean‐Louis van der Velde and Giancarlo Devasini. The last two are also the top managers of both companies.

Earlier, the sweet couple declared that Bitfinex and Tether were independent companies. Now they are trying to convince us that there is nothing wrong with those companies being bound together. In a very peculiar way. This method consists in printing mad amounts of USDT and pouring them onto the Bitfinex exchange. Right after that, bitcoin price begins bouncing. How nice that is.

The activities of Tether and Bitfinex aren’t transparent at all. They basically refuse to do an audit; so they do not need to report on the security of issued assets. That’s where the USDT security becomes questionable.

Every time the founding fathers print new USDT, they start actively buying cryptocurrency on their Bitfinex exchange, pumping up prices. At that time, those who buy USDT for bitcoins are tricked into a ponzi scheme; while those who buy bitcoin finance two accomplices: van der Velde and Devasini. The fact that the USDT is backed with real US dollars is believed only by simple‐minded idiots. Not a great loss.

Like any ponzi scheme, the Bitfinex and Tether couple rests on the users’ gullibility. The founders of the scheme piss in their pockets with great pleasure and then print more USDT, pulling money out of thin air. Once, Devasini said: «We are not criminals, but now we have to learn to bank like criminals». Seriously? Are these people really doing legal business?

Mr. Devasini, where do we have to put a couple of hundred million dollars this time? Let’s do it without any confusing schemes: we’ll just slip the money in an envelope under your door. Tell us the address, and we shall come.

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