The entire cryptocurrency market cap fell by more than US$9 billion overnight in the wake of the ongoing Tether and Bitfinex scandal.
The world’s leading cryptocurrencies shed massive value in the matter of minutes, with Bitcoin (BTC) – the world’s largest digital currency – having lost nearly four percent in the last 24 hours. At press time, BTC is down US$249 to trade at US$5,281, according to data from Einstein Exchange. Over the same period of time, Ethereum (ETH) and XRP (the native currency of the Ripple network) have dropped six and three percent, respectively with ETH down US$11 to trade at US$153.24, while XRP has lost 3.68 percent to trade at US$0.31815.
CLICK BELOW FOR LIVE CRYPTOCURRENCY PRICE INDEXES:
In a press-release published by the New York State Attorney General’s office, it was alleged that crypto exchange Bitfinex had engaged in a cover-up to hide the loss of US$850 million in client and corporate funds.
“Our investigation has determined that the operators of the ‘Bitfinex’ trading platform, who also control the ‘tether’ virtual currency, have engaged in a cover-up to hide the apparent loss of $850 million dollars of co-mingled client and corporate funds,” said Attorney General Lelita James. “New York state has led the way in requiring virtual currency businesses to operate according to the law. And we will continue to stand-up for investors and seek justice on their behalf when misled or cheated by any of these companies.”
The company went on to deny the allegations. It claimed the funds were “not lost but have been, in fact, seized and safeguarded”.
According to to a statement on its website: “Bitfinex and Tether have been fully cooperative with the New York attorney general’s office, as both companies are with all regulators.
India Wants to Ban Cryptocurrencies Once and for All
The government of India is said to be renewing its efforts to completely outlaw public cryptocurrencies. That, according to a report published this Friday by The Economic Times, a news outlet based in Mumbai India. Amid continuing debates about cryptocurrencies, the India’s Investor Education and Protection Fund (IEPF) Authority, which falls under the corporate affairs ministry, is in favour of banning trade in such currencies.
"We think that cryptocurrency is a ponzi scheme and it should be banned," IEPFA CEO Anurag Agarwal said. "When it comes to investor protection, the IEPFA has to take a stand against certain things. Against ponzi schemes, we are taking a stand.”
Last October, India’s Supreme Court requested that the Reserve Bank of India formally declare its stance on cryptocurrencies. Since then, officials have taken several measures to stifle adoption, regulation, and integration of cryptocurrencies throughout the world’s second most populous nation.
