Bitfinex Claims $1B USDT in Private Sale, USDT Transaction Volume Remains Unchanged

Bitfinex has been shrouded in controversy but it seems like the exchange might get out of going bankrupt in the shadiest way possible. The exchange has finished their new token offering, allegedly raising some $1B of USDT during the sale. Some commentators are raising questions, however.

After the New York Attorney General pressed charges against Bitfinex last month, the exchange has been struggling to justify its business model. If found guilty, it will be forced to pay $850M in damages due to fraud.

Shortly after the lawsuit, however, Bitfinex announced a token sale for its LEO tokens. Intended to be the ‘utility tokens at the heart of the iFinex ecosystem,’ the private token sale allegedly raised $1B in USDT.

Paolo Ardoino, the Senior Market Analyst at Bitfinex, tweeted that the exchange raised $1B in USDT in 10 days. Apparently, multiple private companies made investments of over $100M each.

Ardoino originally tweeted that the exchange raised $1B paid in its stablecoin, Tether (USDT). However, the transaction volume doesn’t match this assertion. In fact, USDT transaction volume has not seen any significant uptick as Mati Greenspan points out:

Something certainly looks fishy. If Bitfinex actually had its largest-ever IEO and raised over $1B in USDT, surely we should see a significant change in activity for Tether.

Upon hearing about the criticism, Ardoino backtracked a little bit and responded to Greenspan saying, “We also accepted USD, we should have said USDT or USDT equivalents.”

It seems painfully obvious to anyone what is happening here — BItfinex got sued for $850M for fraud and then held a fake token offering to save face. The real question is, who in their right mind would invest 100s of millions of dollars in a company currently under investigation in a major case?

Do you believe Bitfinex actually raised $1B for its token sale? Let us know your thoughts in the comments below. 

Images courtesy of Twitter.

Jenny
Molly Jane is a Russian Literature major from California with a background in writing. She joins CurrencyTimes after working as a freelance journalist and blogger.

Latest articles

Reddit Co-Founder Highlights Crypto Development Success

Alexis Ohanian Sr., the co-founder of online message and forum platform Reddit, has emphasized the growth of exploration and development in the crypto...

Could Craig Wright Be Satoshi Nakamoto? Probably Not

Craig Wright has been the center of various controversies, but none more dramatic than his claims that he is Satoshi Nakamoto. In the...

Justin Sun Allegedly Fixed His Own Poll with Bots to Win Vote Against ETH 2.0

The poll had EthereumBlockchain is a digital ledger that’s used for storing data on several servers across the world in a decentralized, trustless......

Local Chinese Government Attempts Crypto Mining Ban

China’s Sichuan province has had its local government authorities issue out a notice. This notice comes as a bid to seek to ban...
14.2k Followers
Follow

Related articles