Blockchain and Cryptocurrency: People, Culture and Tech
Controversial cryptocurrency exchange Bitfinex is alleged to have tapped into reserves of the stablecoin issued by sister company Tether to cover up $851 million in losses last year, New York Attorney General Letitia James charged on Thursday.
Tuesday’s big story that the Department of Justice is probing Tether in Bitcoin price manipulation shouldn’t be a shock to one group of people—Modern Consensus readers. “While federal prosecutors opened a broad criminal probe into cryptocurrencies months ago, they’ve recently homed in on suspicions that a tangled web involving Bitcoin, Tether and crypto exchange Bitfinex might have been used to illegally move prices, said three people familiar with the matter,” wrote Bloomberg’s Matt Robinson and Tom Schoenberg. However, we connected the dots months ago when news of a DoJ investigation began surfacing. Modern Consensus began publishing at the start of the year, while crypto prices were stratospheric. Still, back in…
[This story has been updated to name one source.] Bitcoin and most of the cryptocurrency complex faced an onslaught of sellers on Wednesday. While some news outlets are pinning the drop on the battle for Bitcoin Cash, sources at a couple of institutions tell Modern Consensus the real culprit is Tether. The low volatility in the largest and oldest cryptocurrency was shattered suddenly. Bitcoin fell 12 percent in 24 hours, breaking below the $6,000 and at one point changing hands at under $5,500 for the first time in over a year. As of 3:30 p.m. Eastern Time, Bitcoin’s 24-hour trading volume was close to $6.6 billion, according to data from…
