We have known that Crypto-currencies including Bitcoin is not having the best of times lately. Ever since the Bitcoin prices dropped a few years ago after a huge rise. we have not seen the Bitcoin prices go up in the same way.
Now, there is a new report regarding the prices of Bitcoin falling even more. Well, this time the prices of Bitcoin fell 7 percent from what it was a day ago. Bitcoin prices went down from $5490 to $5083 in a matter of just 24 hours.
The reason for this extreme drop is because of allegations of fraud by Bitfinex. The matter was brought into public by a New York Attorney General. He accused the leading crypto exchange Bitfinex of hiding missing funds of $850 million.
Once this news came out in public, it was obvious that the prices were going to drop. The Attorney General from New York has already filed a legal document claiming that Bitfinex “raided the reserves of Tether”.
If you are unaware about Tether, it is a digital currency and its price is kept same as US Dollar so that the traders trading in this currency can easily go back and forth between Dollar and Tether.
Now, the NY Attorney General also says that Tether and Bitfinex are owned by the same executives and staff. Also, they are based in the tax haven of the British Virgin Islands.
Bitfinex, like other Cryptocurrency exchanges, lets you trade your digital currency for real-world currency such as USD, CAD, INR or any other currency. On Bitfinex, you can also buy Bitcoin from your own money as well.
Now, the issue was highlighted when in mid-2018 Bitfinex did not have enough funds to give its customers money in exchange for virtual currency. On this, Bitfinex said that it is just an “a targeted campaign based on nothing but fiction.” and they are not going under any time soon.