Bitfinex under a possible criminal investigation

Crypto exchange Bitfinex is under a possible criminal investigation in the U.S., according to a Department of Justice (DOJ) reply to a Freedom of Information Act (FOIA) request.

The DOJ denied a request for information pertaining to Tether Holdings Limited, its parent company iFinex Inc. and its subsidiaries., which include Bitfinex, citing Exemption 7(A) of the FOIA Guide.

The exemption prevents the disclosure of "records or information compiled for law enforcement purposes, but only to the extent that production of such law enforcement records or information ... could reasonably be expected to interfere with enforcement proceedings."

According to the individual who filed the FOIA request in February 2022, the request itself asked:

“Dear Sirs, Pursuant to Freedom of Information Act (FOIA), 5 U.S.C. § 552, I am hereby requesting any and all information in the possession of the US Department of Justice on jointly and severally TETHER HOLDINGS LIMITED, TETHER LIMITED, TETHER INTERNATIONAL LIMITED, TETHER OPERATIONS LIMITED, IFINEX INC., BFXNA INC., and BFXWW INC.”

Bitfinex has faced several investigations from criminal and civil entities in the U.S. amid questions about

1. whether its sister company, stablecoin issuer Tether, was being truthful about the state of its reserves
2. and whether the company itself allowed U.S. persons to trade on its offshore commodity exchange.

But there are opinions that this means that somewhere withhin the DOJ someone may be looking at Bitfinex. Nothing has happened yet, and it may be a long jmump to actual proceedings.

Source: Coindesk