Bitfinex Exchange: CSO Phil Potter Leaves

Phil Potter the Chief Strategy Officer of Bitfinex exchange has announced he will be leaving the company. According to Reuters Potter is to be temporarily replaced by the CEO JL van der Velde.

Potter was quoted in a statement from Bitfinex:

“As Bitfinex pivots away from the U.S., I felt that, as a U.S. person, it was time for me to rethink my position as a member of the executive team. It’s been an incredible journey over these past four years, and while I wish my colleagues success and good fortune in their ongoing endeavors, I am also looking forward to new opportunities for myself in the days ahead.”

Bitfinex Statement

According to CryptoCompare data Bitfinex is the 4th largest exchange and traded over $650 million in the last 24 hours. It lists 66 coins and 196 pairs with the majority of its volume trading with the infamous Tether (USDT) token.

Tether Controversy

Bitfinex has been the subject of ongoing controversy over the past year due to their close ties with Tether and EOS. Many critics claim that Tether, a 1-1 USD backed cryptocurrency, does not hold a full reserve and is in fact operating a fractional reserve system. Some sceptics believe these Tethers have been used to manipulate the bitcoin markets. In December 2017 Bitfinex was sent a subpoena by the CFTC, however, Bitfinex denies allegations of fraud and market manipulation.

Last week Freeh Sporkin and Sullivan LLP published a report claiming that all of the outstanding USDT tokens were backed by over $2 billion in liquid cash reserves. Despite the report many in the community are still sceptical due to numerous reports showing evidence that tethers had been used to manipulate the bitcoin price causing the 2017 rally.