Robert-Jan Den Haan, a contributor to the Block who has been researching the Bitfinex/Tether situation for over a year, talks about how Bitfinex found itself without access to $850 million of its own money, how the trouble crypto companies have maintaining banking relationships played into that, and the company — or, rather, group of related companies — that is the source of its woes. We also cover where at least a portion of the money is now, and why it likely won’t be made available soon, how a case involving Reginald Fowler and Ravid Yosef is related, and why Bitfinex will likely be conducting an initial exchange offering of $1 billion. Plus, we discuss why the price of Tether has barely budged despite being only 74% backed.

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Episode links:

Original story about NYAG court order against iFinex:

Why at least part of the $850 million was seized (paywall):

Original indictment revealing involvement of Reginald Fowler and Ravid Yosef:

Tether backed by 74% cash and cash equivalents:

Bitfinex and Tether General Counsel Stuart Hoegner’s statement to the NY Supreme Court regarding the OAG’s preliminary injunction:

Indictment from Southern District of New York against Reginald Fowler and Ravid . Yosef:

Reginald Fowler’s Master US Workbook and $345 million sitting in banks:

Reginald Fowler and Ravid Yosef charged with providing shadow banking services to cryptocurrency exchanges:

Bitfinex’s IEO:

Already $500 million subscribed:
Meltem Demirors and Jill Carlson discussing Tether on What Grinds My Gears:

Absolutely hilarious satire on the whole saga: