[patio11]

Bitfinex is the same operation as Tether (commingled ownership and common control). Tether’s product is the eponymous “stablecoin” which promises that each USDT is backed by $1 USD sitting in a bank account and available for withdraw on demand.

This promise is a lie. This announcement walks back the lie.

This is very important for the cryptocurrency ecosystem, because Bitfinex is a large exchange, liquidity provider, counterparty, and (I strongly suspect) lender. If they are factually insolvent or fail in a bank run, that is a Very Big Deal, at least insofar as anyone cares about cryptocurrency.