Cryptocurrencies dropped in value yesterday after the New York Attorney General’s court filings against Bitfinex and Tether were published. Currently, the entire market capitalization is roughly $170 billion and most cryptocurrencies have lost 2-10% of their value since the announcement.
NYAG Announcement Creates Crypto Market Uncertainties
On April 25, the New York Attorney General’s (NYAG) office published a court order that alleged the cryptocurrency exchange Bitfinex lost $850 million and used Tether to cover the loss. NYAG Letitia James said her department found discrepancies and the parent company of both Bitfinex and Tether “engaged in a cover-up to hide the apparent loss of $850 million of co-mingled client and corporate funds.” Bitfinex has responded to the allegations stating: “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.” Armchair sleuths also noticed that 550 BTC ($1.6M) that were connected to the 2016 Bitfinex hack began moving immediately after the NYAG filing.
24-Hour chart for tether (USDT) shows the stablecoin has dipped below the $1 peg since the NYAG announcement.
Cryptos See Slight Recovery After the Losses
With all the controversy surrounding Bitfinex and Tether, the crypto market saw immediate losses and bitcoin core (BTC) plunged to $5,005 per coin on Thursday. The entire ecosystem shuddered for a few hours but many coins have regained some momentum. Currently, bitcoin core (BTC) is trading for $5,285 but is down 3.6% in the last 24 hours.
The top 10 cryptocurrencies by market cap on April 26, » Read Full Article «