CoinMarketCap, a well-known cryptocurrency monitoring service, has stopped taking into account the cost of Bitcoin cryptocurrency (BTC) on the Bitfinex exchange from its market cap calculation.
An asterisk appeared on the resource, to the left of the coin value. This means that the BTC price on Bitfinex is no longer included in the general report:
Bitcoin rate on Bitfinex is overstated by $294 (5.2%) compared to the market average. On CoinMarketCap over the past day, virtual currency fell by 1.3%, while on most other exchanges the drop reached 1.68%.
The rules of CoinMarketCap indicate that the value of cryptocurrency on the exchange is not taken into account when establishing the market price in case the asset rate does not correspond to the average. This usually occurs when the trading platform freezes the input or output of funds or the government prohibits buying digital assets.
Dark clouds hanging over Bitfinex. The New York State Prosecutor’s Office in April 2019 accused the company of concealing losses of $850 million. According to the investigation, the exchange transferred the users’ money to the account of the payment operator Crypto Capital. Official representatives of Crypto Capital reported that the authorities of Portugal, Poland and the United States confiscated $851 million owned by Bitfinex. The exchange reimbursed the missing funds with USDT tokens borrowed from a startup Tether.
Bitfinex management has hidden information about the missing money from investors and traders. The exchange and Tether agreed that Bitfinex would be able to borrow USDT tokens in the amount of $600-$700 million. In total, Tether issued a loan of $625 million for 3 years at 6.5%.
On April 24, Bitfinex sent a letter to the prosecutor’s office stating that the exchange is working to return the funds withdrawn from the Crypto Capital account. Representatives of the company did not disclose the reasons for the confiscation of $850 million, however, they expressed confidence that the company would be able to regain control of the assets.
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