Crypto Capital has claimed that the money is frozen and that's why they can't send it back. Execs at Bitfinex/Tether believe maybe Crypto Capital's principal, Ivan Lee, has stolen it and that's why he won't send it back. The NY AG contacted Portugese and Polish authorities and, from them, was informed that there were no official orders freezing Crypto Capital bank accounts in those countries. So the most likely scenario by far is that Ivan Lee has stolen the money.
The NY AG then files a civil lawsuit against Bitfinex, and in doing so reveals to Ivan Lee that the US government is aware that he has stolen the money.
But he (Ivan) has not yet been arrested. So now we have a guy who has committed a massive crime and who is comfortable with tax havens and living internationally and corrupting institutions and who has been given a fair warning to go into hiding before he inevitably is indicted. Oh, and he has $850,000,000. Doesn't he sound like, idk, a flight risk? If he flees, regardless of iFinex's failure to disclose the suspected loss to investors, gross negligance on behalf of the NY AG may contribute to investors losing $850 MM.
Why wouldn't they criminally charge the guy who they strongly imply has actually stolen the money first before they file a civil suit against the victims* dumb enough to send it to him? (* This is called VAF - Victim Assisted Fraud)
There's a lot of angles from which to look at this. Bitfinex/Tether are shady, no doubt. But if the NY AG actually believes what they are purporting to, this stands out to me as a bizarre choice.
I've read the 24 pages report and missed that part, could you quote it please?
To me, the whole thing looks like this: "Hey Bitfinex, you can't keep running your operations when you're missing 800M. We know that, because we're the one who seized that money from you"
> To me, the whole thing looks like this: "Hey Bitfinex, you can't keep running your operations when you're missing 800M. We know that, because we're the one who seized that money from you"
This sounds right. Pretty interesting stuff
"The New York Attorney General’s court filings were written in bad faith and are riddled with false assertions, including as to a purported $850 million ‘loss’ at Crypto Capital. On the contrary, we have been informed that these Crypto Capital amounts are not lost but have been, in fact, seized and safeguarded. We are and have been actively working to exercise our rights and remedies and get those funds released.” https://cointelegraph.com/news/tether-hits-back-at-claims-it...
So basically they are saying Ivan didn't nick it - the authorities froze it.