Bitfinex and Tether respond to mismanagement claims

Following several months of silence, Bitfinex and Tether have finally responded to mismanagement accusations via Media Blitz.
A newly appointed spokesperson for both Bitfinex and Tether has recently spoken out about the company’s stance regarding accusations of mismanagement. The spokesperson, Ronn Torossian, sent out an email earlier this week to news reporters regarding the incident.

In the email, Torossian states that the accusations were due to questionable witnesses who raised an alarm regarding the two firms’ management. Torossian also added that Bitfinex aims to become the most transparent cryptocurrency exchange platform in the world.

In his email, Torossian questioned the accuser, known by their blogging pseudonym, Bitfinex’d. The user has previously criticized the exchange on YouTube as well as posts on Medium. Torossian added that since the user chose to remain anonymous, this calls in to question the reliability of their claims. In his emails, Torossian also added that unlike its accuser, Bitfinex is a publicly known firm with a highly competent managing team. Ironically, no single person on the management team is mentioned, as the team is yet to be revealed on the Bitfinex website.

According to Torosian, Jan Ludovicus van der Velde acts as CEO, while Phil Potter serves as Chief Strategy Officer, and Giancarlo Devasini fills the role of Chief Financial Officer.

Surprisingly, the email acknowledged that the cryptocurrency Tether is, in fact, linked to Bitfinex. The ties between the two companies have been speculated for some time now. However, certain leaked documents recently confirmed that Devanisi was a shareholder of Tether, while Potter acted as a director in the firm. The ties have been widely reported on and have been a source of controversy. Notably, The New York Times published a piece regarding Bitfinex’s many controversies which referenced the documents.

However, Torossian’s email addressed these controversies and specifically focused on the subject of Tether’s reserves. The firms will make their full audits available soon. However, Torossian did state that Tether held $442.9 million in cash on September 15th, to fulfill their fully backed cryptocurrencies claims.

However, the audit report conducted by Friedman LLP stated that the company's report contained certain conditions. According to the auditor, Tether’s cash is in an account in a trustee’s name, and Friedman stated that there’s no evidence yet regarding the precise agreement between the company and its trustee. In addition, the auditor stated that the initial report failed to include certain key details, such as the conditions of the bank account as well as Tether’s access to withdraw money from the account. So far, the name of the involved bank has not been made publicly available.  Something which is, according to Torossian, standard procedure.

Torossian also claimed in his email, that Tether is currently working with the relevant law enforcement authorities to investigate the breach they reported last month. According to the firm, $30 million worth of Tether tokens had been stolen. An apology was issued for Bitfinex’s prolonged silence, stating the firm’s increased trading volumes as one of the main reasons behind its silence. Torossian also confirmed that Bitfinex has lost several relationships with US-based banks following the accusations. While Torossian did not name any banks, Wells Fargo has confirmed to have put an end to their relationship with the firm.

Torossian concluded the email on a positive note by stating that Bitfinex recovered successfully following the accusations. Its prospering business is indicative of a reliable and trustworthy firm that provides its users with a diverse and transparent service.