- Tethers are being issued at a pace of 13 billion per year.
- No one knows where the money is, but no one seems to care.
- Bitfinex halted new accounts registrations.
- Bitfinex employee's profile suggests that he or the company is being investigated.
- Tether Limited runs the Bitfinex playbook by imposing redemption minimums, effectively freezing customer funds.
In my previous articles, I talked about the surprising correlation between the supply of Tether and the price of Bitcoin. I encourage you to read both of them for some background. In essence, there are good reasons to believe that Tether Limited is issuing Tethers that are not backed by USD as promised in order to purchase Bitcoin through Bitfinex. After examining the flow of Tethers, which originate from Tether Limited and are then subsequently distributed to various other exchange all through Bitfinex, I believe that Tether's correlation to Bitcoin is no simple coincidence.