Additional Bribery Case Found For Tether’s New Bank, Deltec

  • It was previously found that Tether’s new bank, Deltec Bank & Trust, was under investigation for laundering money from a Brazilian official
  • Recently, sources find that Deltec is involved in another case, this time involving Venezuelan officials.

Over the past few months, cryptocurrency exchange Bitfinex has been having banking issues. Specifically, users have been doubting whether or not Bitfinex, who shares management with Tether, has the dollar reserves required to back their stablecoin (USDT).

Making matters worse, some Bitfinex users have reportedly been unable to complete deposits and withdrawals. Things got so bad that as Tether issues spread, Bitcoin jumped 10% as users made a flight for safety.

After these issues, it looks like Bitfinex is trying to fix their banking partners. After leaving Noble Bank of Puerto Rico, it was confirmed that Bitfinex found a new banking partner, Deltec Bank & Trust. Deltec even went as far as to confirm with an official letter that Bitfinex was banking with them and that they have the required reserves.

However, all that glitters isn’t gold. Breaker Magazine recently reported that Deltec has been named in two global bribery cases. A previous Bahamian news report claims that Deltec is under investigation by the U.S. government for reportedly receiving $12M in bribes from a Venezuelan official.

Days later, Breaker also found that former Brazilian official Paulo Vieria de Souza, under investigation for the Odebrecht corporate bribery scheme, was possibly moving money through Deltec Bank & Trust. CryptoGlobe previously reported on this Brazilian case.

There’s no clear indictment so far, but Deltec is currently under investigation for these crimes. It could be found that Deltec is completely innocent, but either way, this shows some of the problems businesses face when they bank in the Bahamas. Due to their relatively relaxed banking laws, the islands have long been a tax haven and money laundering heaven.

Tether has had problems for at least a year, making users doubt their trust in the token itself. Due to this insecurity, countless stablecoin alternatives are popping up everywhere. From Gemini to Circle, various firms have launched stablecoins that compete with Tether.

Sub-accounts in Crypto: What They Are and How They Work


Julia Gerstein, a crypto trading bots enthusiast and a content writer at TradeSanta. My final goal is to help readers find what they need, understand what they find, and use what they understand appropriately.

Speaking generally, a sub-account is a segregated smaller account that is tied to a larger primary account. Sub-accounts may serve different functions depending on the objectives of their owners. The term can refer to multiple email addresses linked to one user or secondary accounts tied to a primary account with a financial institution or a bank.

For this article, we will be looking at sub-accounts as they exist in the crypto industry, and specifically on trading platforms.

Built-in Sub-Accounts

On trading platforms, the sub-accounts feature allows users to create a set of subsidiary accounts with different trading strategies, funds and end customers. On some platforms, general accounts already come with built-in sub-accounts.

For example, exchange platform Crypto Facilities provides each user with cash and margin accounts when they sign up. While deposits and withdrawals are completed with the cash account, trading an instrument requires users to make an internal transfer from a cash account to their margin account that corresponds to the instrument in question.

Each instrument has its own margin account. This grants users more control over their funds and allows them to manage risks for each instrument separately from their main balance.

Optional Sub-Accounts

Other cryptocurrency exchanges, such as Gemini and Binance, have launched sub-accounts as an optional feature for institutional investors.

As an optional feature, sub-accounts can serve to introduce additional security measures and different access levels between the main account and its subsidiaries. Binance has underlined the differences between a master account and its subsidiaries, providing the former with the exclusive ability to view all data and balances, transfer funds between accounts, and have full managerial control and access to a range of asset audit tools.

Here master accounts have sole control over the movement of assets between sub-accounts, and can grant each of them different access levels and permissions. This ensures that the main account has the power to direct and monitor the actions of all its associated accounts, while each sub-account can perform its function independently from other sub-accounts.

Not Only for Institutional Investors

While institutional investors have been able to create sub-accounts for a while, this feature is still being introduced by more and more major exchanges.

Now even individual investors can create subsidiary accounts to try and assess the performance of distinct trading strategies. For example, HitBTC recently introduced its own sub-accounts feature that is now available per user’s request.

At HitBTC, sub-accounts enable users to create separate subsidiary accounts with which they can utilize various trading styles and strategies with operational autonomy. While each sub-account is separate, all of them are still tied to a master account and contribute to the cumulative volume of all accounts connected to the master.

Because trading volume is measured cumulatively, the use of the subaccounts feature can open up additional benefits for traders such as lower commissions due to progressive fee tiers that reward users for contributing to the liquidity on the trading platform.

Therefore, users can perform a variety of different trading activities unconnected to each other, and all the activities will still weigh in the financial favor of the parties involved. Master accounts also have access to important data such as the performance of each sub-account and total trading fees of all linked accounts combined. While the feature is designed with institutional and corporate clients in mind, on HitBTC any user can create sub-accounts upon request.

The adoption of this feature by more and more trading platforms will be beneficial for both institutional and individual traders. Some users can utilize it to execute different trading strategies or try various algorithms with a clear picture of their effectiveness, others to manage their team and analyze the performance of each account securely and conveniently.

Featured image by Tyler Franta on Unsplash