Spoiler Alert: The ‘Institution’ buying Tethers, is Bitfinex themselves.

On December 1st, a shareholder report managed to get leaked.

The relevant section of the document is here shown below.

In the Bitfinex shareholder report, they claim that users are requesting “Tethers”, Bitfinex purchases a batch of Tethers to process ‘Tether withdrawals’ and when they run dry of Tethers, they ‘purchase’ more Tethers from Tether.

Let’s pretend!

For a moment, we’re going to accept this claim at face value.

This means that Bitfinex is converting users US Dollar balances (which IS money), into Tethers, which as we all know by now… is not money.

Image result for tether is not money
Source (Archive)

I highly doubt that Bitfinex is informing people that their Tether ‘withdrawals’, or ‘purchases’ convert their Real Money USD balances into Tethers which are objectively and legally, worthless.

This may explain why Bitfinex tried to hide their relationship to Tether. A relationship that I proved with audio of Phil Potter contradicting himself regarding the issue.

Interestingly, the relationship was only denied after they lost banking.

This was then further proven by the Paradise Papers leak.

Source (Archive)

So, when reading Bitfinex’s own shareholder report. They admit to purchasing worthless, non-redeemable “Tethers” from a company owned and controlled by the Bitfinex executives.

I’m sure there’s no conflict of interest there. If this is what they are doing, they are essentially stealing everyone’s money.

Because after all, a Tether never has to be paid back.


No more pretending

This is what they are telling their shareholders. It should be treated with extreme suspicion, but what I am showing you is even if they are in fact, doing exactly what they are telling their shareholders they are doing…

They’re still engaging in fraud.

This also doesn’t address what Tether is doing with the customer funds, I highly suspect the Tether funds are being used on Bitfinex’s margin markets… meaning that the Tethers are essentially invested in an ultra-high risk market.

Because as I have shown, there’s a single user with hundreds of millions of dollars on their account for margin lending.

However, since Tethers aren’t backed by funds anyway, this shouldn’t really be a problem. /sarcasm

Trade Carefully

-Bitfinexed

Like what you read? Give Bitfinex’ed a round of applause.

From a quick cheer to a standing ovation, clap to show how much you enjoyed this story.