Bitfinex-Tether controversy: Binance’s CZ announces impending transfer of USDT funds to new cold wallet address

The New York Attorney General’s recent allegations suggested the involvement of Tether [USDT] and Bitfinex exchange in a conspiracy to hide the exchange’s loss of $850 million. While the ecosystem slowly recovers from the bearish market in the aftermath of the episode, Binance’s Changpeng Zhao informed his community of followers about an impending “large transaction”.

Prior to February 2019, Tether was claiming that its tokens were backed one-to-one by traditional currencies held in reserve. Later, however, Tether edited its Terms of service, bringing a degree of ambiguity to the nature of reserves that actually back the cryptocurrency. The episode with Bitfinex was the latest in the long line of troubles for the stablecoin.

CZ’s tweet read,

“We will be moving USDT funds to a new cold wallet address. One large transaction coming. Funds are #SAFU.”

However, the announcement was met with skepticism by many users. @Estato_Diritto asked,

“Can we know why?”

Zhao responded to a host of such comments by stating,

“No need to FUD.” and “We rotate/expire addresses as a SOP (standard operating procedure).”

Bitfinex and Tether’s response to the New York AG’s accusations was quick, categorically stating that “court filings were written in bad faith and are riddled with false assertions”. The corresponding statements also claimed that both Bitfinex and Tether were financially strong “full stop”.

In the meantime, crypto users across the globe remain cautious about the future of the crypto market. Many analysts are yet to conclusively predict what the implications of the whole episode are on the cryptocurrency market. However, some people speculate that the news is not that pressing and will have minimal impact on the overall crypto market.

Many in the Asian community are among them, with several Chinese traders hoping to buy Tether cheaply, expecting a crypto-dump in the coming days.

The post Bitfinex-Tether controversy: Binance’s CZ announces impending transfer of USDT funds to new cold wallet address appeared first on AMBCrypto.