On November 22, without notice to us, a class action complaint was filed against Bitfinex and Tether in the U.S. District Court for the Western District of Washington. This copycat lawsuit suffers from the same multitude of deficiencies as the unsound complaint filed in the U.S. District Court for the Southern District of New York on October 6. The Plaintiffs' claims here are similarly without merit, and Bitfinex strongly contests the bogus research purporting to support them.
As we predicted last month, mercenary lawyers continue to try to use Bitfinex and Tether to obtain a payday. To be clear, there will be no nuisance settlements or settlements of any kind reached. Instead, all claims raised across both actions will be vigorously contested and ultimately disposed of in due course. Once they are, Bitfinex and Tether will fully evaluate their legal options against those bringing and promoting the baseless claims.
These absurd and groundless accusations are an attack on the growth, success and innovation of the entire digital token ecosystem, in which Bitfinex is proud to play a critical role. Meritless lawsuits like these are a continuing affront to the efforts and dedication of Bitfinex's customers and all participants in the digital currency ecosystem. Our fight is the community's fight.
Founded in 2012, Bitfinex is a digital asset trading platform offering state-of-the-art services for digital currency traders and global liquidity providers. In addition to a suite of advanced trading features and charting tools, Bitfinex provides access to peer-to-peer financing, an OTC market and margin trading for a wide selection of digital assets. Bitfinex's strategy focuses on providing unparalleled support, tools and innovation for professional traders and liquidity providers around the world.
Bitfinex and its affiliates have never used Tether tokens or issuances to manipulate the cryptocurrency market or token pricing. All Tether tokens are fully backed by reserves and are issued and traded on Bitfinex pursuant to market demand, and not for the purpose of controlling the pricing of crypto assets. It is irresponsible to suggest that Tether or Bitfinex enable illicit activity due to the efficiency, liquidity and wide-scale applicability of Tether's products within the cryptocurrency economy.
We're excited to announce a platform update that brings new important features to Bitfinex traders.
We're dedicated to bringing you the best platform possible. Feedback from our customers is incredibly valuable to us. If you have any suggestions, please join the Bitfinex Telegram channel.
On November 18th, MakerDAO is reaching an important milestone launching Multi-Collateral Dai. The upgrade will introduce new features to the Maker Protocol, including the Dai Savings Rate (DSR) and additional collateral asset types. More details and information about the upgrade can be found on the MakerDAO's blog.
Bitfinex will support the upgrade via a two step process:
How to be part of the upgrade?
If you already hold DAI on our platform and wish to participate in this upgrade, you do not need to do anything - the funds will be automatically upgraded on December 2nd.
What if I don't want to upgrade?
Users who do not wish to upgrade must opt-out by withdrawing their funds before December 2nd. On this date we will suspend all deposits and withdrawals of SAI and any remaining SAI on the exchange will be converted into DAI.
After the upgrade, which is expected to be completed on December 2nd, deposits and withdrawals of DAI (Multi-Collateral Dai) will open.
SAI (Single-Collateral Dai) deposits made on to Bitfinex after December 2nd will not be credited. Please exercise extreme care to avoid depositing wrong tokens or to a wrong address as we cannot guarantee that funds are recoverable.
Today, Bitfinex advised the U.S. District Court in the Southern District of New York of its intention to file a motion to dismiss the frivolous class action lawsuit filed last month. The motion will allege that many of Plaintiffs' causes of action lack the required legal basis to proceed past the very early stage of the case.
There are several reasons to look at the Plaintiffs' claims with a jaundiced eye, including the following. Plaintiffs' accusations of bitcoin manipulation largely rely on a draft of an unpublished academic paper by John M. Griffin and Amin Shams. Separate and apart from key methodological flaws in the paper, it was recently amended to walk back support for a core allegation of the Plaintiffs' complaint. The complaint also ignores an array of other factors that contributed to the spike in the price of bitcoin in 2017. Furthermore, the complaint claims, without evidence and in defiance of reason, that somehow Tether manipulated a market more than seven hundred times the size of total Tether USDT issuances in circulation between March and December of 2017, something that any sophisticated and rational observer of the digital token ecosystem knows to be ridiculous.
Bitfinex looks forward to putting the true facts before the court at this stage and throughout the proceedings. The Plaintiffs continue to act in a way that undermines the many contributions of thousands of members of the digital token economy. Bitfinex will vigorously contest Plaintiffs claims and relentlessly defend itself, its customers and stakeholders, and the cryptocurrency community.
To view the full text of the pre-motion letter to the court, click here.
We're pleased to announce that Bitfinex has listed Chiliz (CHZ). Trading in CHZ commenced on 15/11/19 at 11:00 AM UTC.
CHZ is a native token best known for powering Socios.com, a blockchain-based platform that enables sports fans to buy tokenized voting rights in their favourite teams. For more information on CHZ, please visit: https://www.chiliz.com/en/token-details/
CHZ can be traded with US Dollars (CHZ/USD) and Tether (CHZ/USDt).
We have now reviewed the updated Tether article by John M. Griffin and Amin Shams.
To obtain publication, Griffin and Shams have released a weakened yet equally flawed version of their prior article. The revised paper is a watered-down and embarrassing walk-back of its predecessor that still suffers from the same methodological defects, coupled with the clumsy assertion that one lone whale may be responsible for the rise of bitcoin in 2017.
The purported conclusions reached by the authors are built on a house of cards that suffers from the absence of a complete dataset. As an example of one of many deficiencies, the authors openly admit they do not have accurate data on the crucial timing of transactions or the flow of capital across different exchanges. This critical lack of information means they are unable to establish a valid sequence of events through which the alleged manipulation could have happened. The updated paper is still based on the same incomplete and cherry-picked data that made the original study deficient. Furthermore, the authors now admit that the patterns of trading they observed could be consistent with the market purchase of Tethers, as opposed to the issuance of unbacked Tethers. Importantly, the authors do not possess or reference any data disputing that Tether has sufficient reserves to back up Tether token issuances in circulation.
Despite Griffin's false bravado in recent aggressive statements to the media, the authors demonstrate a fundamental lack of understanding of the cryptocurrency marketplace and the demand that drives Tether token purchases. Simply stated, the digital token economy is driven by larger and more complex factors than the trading practices of any single player. Judging by the reaction to the updated paper, sophisticated and experienced traders in the ecosystem appear to fully understand this concept. To reduce the spike in the bitcoin price in 2017 to such simplistic terms is facile. It is also an insult to the millions of people in our community that believe in the sound principles governing the digital currency economy.
Tether and its affiliates have never used Tether tokens or issuances to manipulate the cryptocurrency market or token pricing. All Tether tokens are fully backed by reserves and are issued pursuant to market demand, and not for the purpose of controlling the pricing of crypto assets. It is reckless – and utterly false – to assert that Tether tokens are issued in order to enable illicit activity. Tether token issuances have quadrupled since December 2017. This growth is not a product of manipulation; it is a result of Tether's efficiency, acceptance and widescale utility within the cryptocurrency ecosystem.
We're pleased to announce that affiliates and referrals on the Bitfinex Affiliate Program can enjoy margin funding fee rebates.
All active accounts on the Affiliate Program, including those opened with a referral code, are eligible for margin funding fee rebates from 06/11/19 10:00 AM (UTC).
The margin funding fee rebate structure replicates that of the Bitfinex Affiliate Program's tiered commission structure: Affiliates are eligible for a percentage of the margin funding fee rebates on up to three levels of referrals within their network and entitled to multipliers of up to 2.16x on their margin funding fee rebates when certain requirements are met.
However, rebates will not be made retrospectively. Affiliates will not be entitled to fee rebates for any margin funding earnings that took place before 06/11/19 10:00 AM (UTC).
Since we announced the debut of Kimcoin on the Bitfinex Token Sale platform, the regulatory environment has rapidly evolved. The risks associated with raising funds for the K.im token sale have become clear, and we must put our community's best interest first and foremost.
After careful evaluation, we regret to announce that Bitfinex Token Sales and the K.im team have mutually agreed not to hold the token sale at this time. K.im will defer any decision on whether to create tokens on, or undertake a token issue in relation to the K.im platform until it is fully functional.
In the meantime, the K.im platform project itself will continue and it is likely that an equity based offer will be made some time in the near future to qualifying investors who wish to become involved at this stage of the project.
The K.im project, which has received remarkable support and has worked incredibly hard, will continue building and we look forward to following the team's progress!
We're excited to announce a platform update for our clients that brings new important features, following our recent introduction of Bitcoin withdrawals on bech32 addresses.
Traders can now generate bech32 addresses on Bitfinex, with our platform also supporting Bitcoin deposits to bech32 addresses.
As some exchanges still do not support withdrawals on bech32 addresses, our traders will have the option of using either the original Pay to Script Hash (P2SH) SegWit deposit address or native SegWit bech32 address. Traders can choose their desired option via a tick box on their Account Info page.
Bech32 is a SegWit address format specified by BIP 0173, with its address starting with the alphanumeric characters bc1. A bech32 address consists only of lowercase letters, thereby making each address not case-sensitive.
The launch of this new support for bech32 addresses demonstrates our commitment to developing and scaling Bitcoin, amid increasing use and adoption of the world's biggest cryptocurrency. SegWit increases Bitcoin's maximum block size, enables the processing of more transactions per second and fixes transaction malleability.
This also demonstrates Bitfinex's commitment to speeding up the adoption of SegWit for the benefit of Bitcoin and the wider cryptocurrency community.
Ampleforth is making two important updates to the way that the supply of AMPL changes. As of the 30th October 2019, the following two changes will come into effect:
The shorter reaction lag time means that global supply will reflect changes in the price of AMPL quicker. Whereas the new update time has been chosen in order to help decentralise the oracle.
The last rebase at the old time will occur on Tuesday 29th at approximately 8PM UTC as per normal.
The first rebase at the new time will occur on Thursday 31st October at 2AM UTC. Users who hold AMPL tokens in any of their Bitfinex wallets will see their AMPL balances adjust shortly after.
For more information, please see the Ampleforth blog post and our knowledge base.