I am bewildered on how Bitfinex's executives are good in problem solving. The exchange has been in the middle of bad controversies but appears to get out of them without anyone of their executives going to prison. That is impressive hehehe!
phil potter left bitfinex in june of last year, which was an ominous sign to me. after all they've been through over the years, if phil is jumping ship, there's probably real cause for concern. the feds very well may be closing in on bitfinex as we speak.
These revealments at least point to Tether having the backing they always to claimed to have, until Bitfinex helped themselves to it of course.
that seems plausible, especially when we consider their TOS change earlier this year which specified USDT is fully backed but not necessarily by fiat reserves. this bit looks especially bad for bitfinex/tether. it means the money was gone and tether issued a loan to bitfinex secured only by
shares in ifinex:
Under this transaction, the line of credit is secured by a share charge over 60,000,000 iFinex Inc. shares owned by DigFinex. which DigFinex agreed not to otherwise encumber. That transaction closed on or about March 19, 2019.