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CFTC Sent Subpoenas to Scrutinize Bitfinex and Tether

The Commodity Future Trading Commission (CFTC) subpoenaed one of the global largest digital currency exchange Bitfinex and Tether a tech company that issues digital currency. CFTC sent subpoenas to scrutinize Bitfinex and Tether to gather information on a number of questions. Both firms have the same CEO, Jan Ludovicus van der Velde. Tether boasts that all of its digital coins are anchored to the US dollar that’s makes it immune to cryptocurrency volatilities, though it has not tabled concrete evidence or have its financial records audited to support this claim. According to marketcap.com, Tether market capitalization is 2.3 Billion driven by the recent crypto hype.

A spokesman for both firms, which are affiliates said in a statement to Bloomberg: “We routinely receive legal process from law enforcement agents and regulators conducting investigations. It is our policy not to comment on any such requests.”

Bitcoin the giant crypto by the market value, trickled by 10% on Tuesday. It tumbled another 3.2% to $9,766.41 as of 9:19 am. The cryptocurrency had never sunk below $10,000 since Nov last year.

Both Tether and Bitfinex do not disclose their physical address in both public domains or on their website. On December 3, Ronn Torossian a spokesman for both Tether and Bitfinex said that Jan Ludovicus van der Velde is the Chief Executive for both firms and also the chief strategy officer at Bitfinex. Phil Potter is the current Tether Director according to recently leaked Documents by the international consortium of investigative journalism.

While little or no public information available about how Tether tokens are created most crypto Enthusiasts believe that each Tether coin is worth $1. According to a document posted on Tether website compiled by accounting company Friedman LLP, it exhibits that Tether had 1590 euro and $443 million in banks accounts as of September 15. Neither the document nor Tether website has identified the banks where the money is held.

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