Controversy seems only to be escalating when it comes to popular cryptocurrency exchange Bitfinex. Most recently, unverified resources are reporting that it’s planning to conduct an initial exchange offering (IEO) in order to raise $1 billion worth of Tether (USDT).
$1 Billion USDT IEO on Bitfinex?
According to popular cryptocurrency commentator Dovey Wan, controversial cryptocurrency exchange Bitfinex is planning to raise a total of $1 billion in Tether (USDT) through an initial exchange offering (IEO).
BREAKING and WTF 🤯🤯🤯🤯
Bitfinex is planning on a exchange token sale + IEO… plan to raise $1B in $USDT….
This is really a WTF situation 🤦🏻♀️🤦🏻♀️
— Dovey Wan 🗝 🦖 (@DoveyWan) April 29, 2019
Despite the fact that there is no official statement on the matter on behalf of Bitfinex, other sources have also seem to confirm it, including Chinese billionaire and bitcoin trader Zhao Dong.
According to the trader, large-scale investors have already reserved about $300 million of the total allocations in USDT.
The news does seem to spark quite a bit of controversy, especially given the recent events engulfing both Bitfinex and Tether.
The FUD Intensifies
As Cryptopotato recently reported, the New York Attorney General Letitia James has said that she had managed to obtain a court order against the operator of the controversial crypto exchange Bitfinex – iFinex Inc., and against the issuer of stablecoin USDT – Tether Limited.
According to the NYAG, the cryptocurrency exchange has covered a loss worth of $850 million, giving itself access to $900 million worth of Tether’s reserves, from which the exchange has taken a minimum of at least $700 million.
Bitfinex was fairly quick to respond, saying that the NYAG filings were written in “bad faith.”
“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,” Bitfinex stated.
The timing of the entire thing is particularly odd. While we have yet to see how the situation will unfold, a $1 billion IEO immediately after allegations of covering a loss of $850 million is, indeed, bizarre.