What do you do if you don’t have enough cash in reserve to back up the tokens you issued? If you are Bitfinex, your answer might be: Create a new token to sell. The exchange is on the defensive this week after the New York attorney general accused it of covering up $850 million in lost funds. Bitfinex is weighing a fundraising that, if successful, could allow the exchange to once again meet the 1-to-1 ratio of tether to U.S. dollars in reserve that it promised its customers.
Before we dive into Bitfinex’s predicament, an announcement: The Information is partnering with Global Coin Research to host a happy hour on Monday, May 13, during New York Blockchain Week. The event will take place at 5 p.m., near the Consensus conference in Midtown Manhattan. We have a limited number of spots available for subscribers, so if you would like to attend, please reply to this email and let me know! A big thank you to Nervos and Harmony for sponsoring.