Bitfinex prepares for a possible legal action after the criticism it has received

Bitfinex, the largest exchange of crypto-currencies in the world, has appealed to Steptoe & Johnson, an international law firm, based in Washington DC, to try to put an end to the criticism they are facing. According to Ronn Torossian, CEO of 5W, the public relations company representing Bitfinex, the company takes seriously this matter and wants to put in value the truth.

Steptoe & Johnson is known to be genuine specialists in the field of crypto-currencies. Although Bitfinex has not specified exactly who it was threatening to bring a legal action, the announcement comes after comments from blogger Bitfinex’ed, and denouncing without respite to the company.

Check out below the practices of Bitfinex according to its detractors :

A group working with Tether

Bitfinex is closely linked to the society of crypto-currencies Tether, based in Hong Kong. The two companies are owned and operated by the same people. Tether issues a digital currency, called the USDT, which is pegged to the u.s. dollar. A USDT is equivalent to a dollar. By trading their Bitcoin or other crypto-currencies for the USDT, investors may keep their funds in an active stable and thus preserve their capital.

Tether also allows investors to carry out their transactions without going through a bank. In August 2016, Bitfinex has been hacked, losing 120 000 Bitcoins, with a value of approximately $ 72 million at the time. Rather than declaring bankruptcy, the company has put in place a strategy to revive himself.

The allegations against the company

The current challenge is that more than 800 million of USDT are outstanding. But until now, Tether has shown no real proof that the money necessary to save these digital currencies. According to Bitfinex’ed, Tether creates this crypto-currency from nothing. He also claimed that Bitfinex manipulates the markets through technical as well as unscrupulous, like identity theft.


He also asserts that the company uses the Ponzi scheme to finance their business. While Bitfiniex is trying to preserve his image by threatening legal action against his critics, Stephen Palley, an attorney in Anderson Kill’s Washington, which specializes in software development, think Bitfinex should be as transparent as possible in its approaches.


Source : BitcoinMagazine