A quick shoutout to Bitfinex’ed who has done some amazing detective work on not only Tether, but their connection to Bitfinex. I would highly advise broadening your perception of what could be happening within the cryptocurrency world by checking out his Twitter feed


A week after being hacked for over $30 million, Tether is somehow able to create $95 million in new Tether … and within 72 hours – meaning that an institutional investor felt comfortable enough lending them that much in US dollars since they are required to keep a 1:1 ratio.

— Nicholas Merten (@Nicholas_Merten) November 28, 2017


I think that is exactly what we are seeing. 

Related Article: Tether ‘Hack’ EXPOSES Bitfinex in Money Laundering

This is a Chinese company that has been able to use the currency of the US Federal Reserve as financial backing for over 2 years with absolutely no recourse. They get hacked for $30 million, yet days later are supplied another $95 million? 

Why are institutional investors pouring in millions to buy Tether, yet no one wants to buy Tethers at a discount on Kraken? 

Then it comes to light that Tethers are NOT being created based upon deposits of US dollars, but rather by cryptos being converted. 



Bitfinex, who has been clearly connected to Tether, is the world’s largest Bitcoin exchange by volume, with Kraken and Coinbase right behind it. 

Remember Tethers cannot be exchanged back for US dollars, they can only be exchanged for other cryptocurrencies.

Bitfinex also lends the Tethers out at interest, which then fuels the price of Bitcoin. This is a graph done by Bitfinex’ed to show printing cycles matched with bitcoin prices, as easily visible in the graph, you can see that millions of new tethers appear on downtrends to maintain support of the current price.

As I write this article, Bitcoin has increased over $900 in value and is closing in on $11k. Litecoin breaks $100, Ethereum breaks $500, IOTA up 25% …

Coins like Phoenix Coin have become alive all of a sudden after years of virtually no activity.

A coin called Unit sees a 118k% gain!? 

No automatic alt text available.


Morning of November 29, NASDAQ announces they plan to launch Bitcoin futures sometime within the first half of 2018. 

Is A Bitcoin Short Being Engineered?

Everyone seems excited about institutional investors in the form of derivatives entering the Bitcoin market. Sure there may be some initial impressive gains, but I do not think people understand how derivatives work. 

“Derivatives are financial instruments used to transfer risk from a party seeking to “hedge” (limit) risk to a party willing—for a fee—to assume the risk. Risks transferred may be related to prices (whether they rise, fall, or fluctuate), interest rates, exchange rates, or they may be related to whether a third party will pay its debts.” (source)

What Bitcoin futures (derivatives) means is that institutional investors can bet on what they think will happen with Bitcoin without having to spend a dime.

In the wake of the 1987 stock market crash, then-New York Stock Exchange Chairman Richard Phelan blamed a new and fast-growing derivative—S&P 500 Index futures—traded on the Chicago Mercantile Exchange

In the wake of Lehman Brothers’ 2008 bankruptcy, former Lehman CEO Dick Fuld blamed a new and fast-growing derivative—credit default swaps (CDS)—for his firm’s failure. 

If all of the recent volume coming in is Tether, meaning it’s fake and created out of thin air, would it not make sense that they are prepping for a short to cover up their tracks?

They would make a killing while the average Joe loses everything he or she invested. 

Just as I was about to publish this article, Bitcoin price plummets over $1k. Between the hours of last night and this morning, Tether has created another $25 million.