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Unconfirmed: Insights and Analysis From the Top Minds in Crypto

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May 3, 2019

Robert-Jan Den Haan, a contributor to the Block who has been researching the Bitfinex/Tether situation for over a year, talks about how Bitfinex found itself without access to $850 million of its own money, how the trouble crypto companies have maintaining banking relationships played into that, and the company — or, rather, group of related companies — that is the source of its woes. We also cover where at least a portion of the money is now, and why it likely won't be made available soon, how a case involving Reginald Fowler and Ravid Yosef is related, and why Bitfinex will likely be conducting an initial exchange offering of $1 billion. Plus, we discuss why the price of Tether has barely budged despite being only 74% backed.

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Episode links:

Original story about NYAG court order against iFinex: https://www.coindesk.com/bitfinex-ny-prosecutors-tether-850-million-allege

Why at least part of the $850 million was seized (paywall):

https://www.theblockcrypto.com/2019/04/30/no-bitfinexs-seized-850-million-is-not-likely-to-be-unfrozen-within-weeks/

Original indictment revealing involvement of Reginald Fowler and Ravid Yosef: https://www.theblockcrypto.com/2019/05/01/indictment-reveals-new-clues-to-the-crypto-capital-situation/

Tether backed by 74% cash and cash equivalents:

https://www.coindesk.com/tether-lawyer-confirms-stablecoin-74-percent-backed-by-cash-and-equivalents

https://www.theblockcrypto.com/2019/04/30/bitfinex-reveals-stablecoin-is-only-74-backed-by-cash-says-its-simultaneously-addressing-requests-from-nyag-doj-and-cftc/

Bitfinex and Tether General Counsel Stuart Hoegner's statement to the NY Supreme Court regarding the OAG's preliminary injunction:

https://www.scribd.com/document/408190972/Stuart-Hoegner-Affidavit-4-30#from_embed

Indictment from Southern District of New York against Reginald Fowler and Ravid . Yosef: https://www.justice.gov/usao-sdny/press-release/file/1158991/download

Reginald Fowler's Master US Workbook and $345 million sitting in banks:

https://www.theblockcrypto.com/2019/05/02/us-government-requests-detention-for-defendant-at-center-of-bitfinex-imbroglio-describes-master-us-workbook/

https://www.coindesk.com/u-s-doj-moves-to-detain-defendant-in-crypto-shadow-banking-case

Reginald Fowler and Ravid Yosef charged with providing shadow banking services to cryptocurrency exchanges:

https://www.justice.gov/usao-sdny/pr/arizona-man-and-israeli-woman-charged-connection-providing-shadow-banking-services

Bitfinex's IEO: https://www.coindesk.com/bitfinex-is-planning-to-issue-an-exchange-token-shareholder-says

Already $500 million subscribed:

https://www.coindesk.com/bitfinex-shareholder-provides-more-details-about-potential-1-billion-token-sale

Meltem Demirors and Jill Carlson discussing Tether on What Grinds My Gears:
https://podcasts.apple.com/us/podcast/episode-18-tarred-and-tethered/id1450518746?i=1000436884557

Absolutely hilarious satire on the whole saga: https://coinjazeera.news/federal-reserve-conspiracy-and-phil-potters-tether-scam/