Bitfinex Crypto Exchange Needs A Few Weeks And The Funds Will Be Unfrozen

Bitfinex crypto exchange is trying to prove the crypto community that the platform is solvent and operational despite the rumors. Two shareholders of the platform claim to be unconcerned by the New York Attorney General’s office allegations that we previously covered in the latest cryptocurrency news of losing $850 million of clients’ funds.

Zhao Dong, one of the Bitfinex crypto exchange shareholders who tried to reassure the community that everything is okay, explained two days ago that he is still ‘’supportive’’ of both Tether who is the issuer of the controversial stablecoin and Bitfinex and their overlapping management.

The chief financial officer at Bitfinex crypto exchange Giancarlo Devasini assured Zhao that this is only a temporary issue. Devasini also stated that the exchange only ‘’needs a few weeks and the funds will be unfrozen.’’ Zhao made clear:

 “The funds were in several banks in Poland, the U.S. and Portugal, so I’m not sure but that’s what I heard.’’

The New York Attorney General’s office as previously mentioned in the coming altcoin news, says that the missing funds belong to corporate accounts at the bitfinex crypto exchange but also the exchange itself. Zhao on the other hand, says that the funds belong only to customers by noting:

 “What the information I have right now is there are no losses, but the funds belong to clients. If the U.S. government seized the funds, they should know, the funds don’t belong to Bitfinex or Tether, it’s the clients’ money.”

Zhao made comments only a day after the court order by the New York Attorney General which asked the bitfinex crypto exchange to turn over all documentation about the matter as well as explanations on how the platform managed to borrow funds from Tether.

According to the investigative findings, the trading platform could not access the $850 million which are in the Panama-based Crypto Capital and therefore borrowed $700 million from Tether’s reserves to cover up. The news spiked a massive confusion on the market which then spiked a sell-off on the broader crypto market. Zhao argued:

 “Tell me, which bank is 100 percent reserved? Not even Tether is … fully reserved, [but] it’s much, much better than other banks,” he said. “Most banks only have 2-3 percent of reserves, for Tether even the $800 million [that] is lost, even that is [not all of their funds], they have 70 percent reserved.”