Bitfinex Chief Technique Officer Phil Potter introduced Friday that he has determined to resign from the corporate. He’s additionally leaving the identical function at Bitfinex’s companion firm, Tether Ltd., issuers of a stablecoin (USDT) that’s pegged 1:1 in worth to the US Greenback.
Potter Steps Down
In an emailed assertion launched to the media on Friday, Potter acknowledged:
As Bitfinex pivots away from the U.S., I felt that, as a U.S. particular person, it was time for me to rethink my place as a member of the govt crew.
The doubtful timing on Potter’s departure, which comes within the wake of each corporations being served subpoenas by the USA Commodities and Futures Buying and selling Fee (CFTC) in December of final yr, has raised questions as as to whether the investigation was associated to the cut up.
All Eyes Are on Bitfinex
Bitfinex is presently the sixth largest cryptocurrency trade, with a 24-hour commerce quantity of greater than $432 million. The trade has been beneath scrutiny from the crypto neighborhood because the sudden finish of its cooperation with Wells Fargo & Co. and all different formal banking companions within the spring of 2017. They just lately dissolved a relationship with auditor Friedman LLP who had been working with them for over 5 months in an effort to quell any speculations of fraud inside the firm. The audit from Friedman LLP was by no means launched.
In January of 2018, Tether printed 850 million new Tether cash, greater than any month prior. With no public audit to substantiate their US Greenback reserves, a lot of the neighborhood has misplaced religion within the legitimacy of Tether and Bitfinex. On June 20, Tether introduced that it had retained the companies of the regulation agency of Freeh, Sporkin & Sullivan LLP to look over the corporate’s financials. The agency wrote that it’s “assured that Tether’s unencumbered belongings exceed the steadiness of fully-backed USD Tethers in circulation as of June 1st, 2018.”