Blogger ‘Bitfinex’ed’ Hires Legal Counsel To Fight Against Legal Threats

Bitfinex’ed,” the fictitious blogger and persistent judge of cryptocurrency exchange Bitfinex, has employed a distinguished lawyer amid a long-term conflict with the controversial company.

Stephen Palley, an associate at Washington, D.C.-based firm Anderson Kill, sent a stern letter to Bitfinex’s general counsel on Monday, Stuart Hoegner. A duplicate that was from CoinDesk, Palley gave cautions that if he finds that the exchange is behind threats which have been made against his client he will make sure that the law interferes.

Palley’s connection with the pseudonymous blogger dates back to December while Bitfinex publicly threatened legal action actions Bitfinex’ed. The blogger employed Palley that month but kept the engagement quiet until now.

A spokesman for Bitfinex did no longer respond to a request for a remark by press time.  Palley could no longer elaborate on the nature of the threats, bringing up safety worries. Bitfinex’ed claimed that a person had offered a five-figure bounty for personal records about the blogger last year.

Recently, after the @Bitfinexed account was in suspended from Twitter, the accused user of Bitfinex hiring bots to mass report critic. The exchange denied this charge.

Bitfinex’ed has been writing critical and rather highly posts about the exchange considering that August of last year. Many of the posts have targeted on the connection among Bitfinex and Tether, the company of USDT, a “stablecoin” connected to the U.S. dollar that is possibly as controversial as the British Virgin Islands-based crypto exchange.

According to the bloggers perspective, Tether has been issuing more USDT than it has dollars in the bank with a purpose to artificially inflate the price of bitcoin. Tether had maintained that an impending audit from Friedman LLP might display that its token was fully subsidized. However, in January, Tether stated that its alliance with Friedman had ended, without giving no further information.

Whilst the severing of ties with Friedman has created doubts on Tether’s financials, different observers have argued that the company is restricted in what it can portray on its finances. for instance, if it was to identify its banking partners, those establishments might get in trouble with regulators with these issues happening. There are worries that Tether poses a systemic danger to the wider cryptocurrency market, given USDT’s distinguished role as a source of liquidity.


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