Bitfinex Sends Subpoena to Free the Frozen $850M

Bitfinex is now seeking access to the $850M in fiat funds locked away due to the investigation against CryptoCapital.

Bitfinex has tried to directly seek access to $850 million, which were locked away for the better part of 2019, by issuing a subpoena to obtain documents related to the funds. The fiat reserves, used for the regular workings of Bitfinex were locked away in the spring of 2018, but the exchange announced the news only later.

Since then, Bitfinex has attempted to patch up the hole by loaning some of the assets of Tether, Inc., leaving USDT with a backing of just 74% in fiat sitting in a bank, with the rest in other types of assets. Subsequently, Bitfinex also issued the Unus Sed Leo (LEO) token, reportedly raising above $900 million in a private placement.

However, Bitfinex has not given up on discovering the actual funds in the accounts of CryptoCapital. The startup, providing banking services to exchanges, was caught performing illegal banking operations, and now faces an international investigation, with most of its assets frozen.

The subpoena is specifically asking for the testimony of Rondell “Rhon” Clyde Monroe, seeking permission for testimony and the revelation of documents related to the funds. The petition is supported by the declaration of Giancarlo Devasini, the CEO of iFinex.

“Applicant iFinex Inc. ("iFinex or "Applicant) seeks the assistance of this Court in obtaining discovery r se in reign proceedings both cuentl ongoing and contemplated in Poland, Portugal, and the United Kingdom. In those proceedings, Applicant seeks to recover approximately $880,000,000 of nds which it had entrusted to an entity named Global Trade Solutions AG ("Global Trade), doing business as "Crypto Capital,” Bitfinex stated in the subpoena.

In 2019, the troubles of Bitfinex and Tethers strangely failed to affect the markets, and Bitcoin (BTC) even continued to boom to a July peak. Additionally, the minting of new USDT continued, reaching a recent peak at 4.16 billion coins.

The activity of Bitfinex, however, was much lowered, with 97% of trading volumes lost in the past year. The exchange no longer directly affects the price of BTC, and USDT coins have been spread to multiple exchanges.

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