Zhao Dong, a prominent Chinese early bitcoin adopter and shareholder in Bitfinex, recently posted on Weibo seeking to provide anecdotal evidence as to the integrity of Bitfinex and Tether’s financial reserves. The post claims that Zhao Dong and Lao Mao, the chief executive of Big.one, have witnessed first hand the balances of Bitfinex and Tether’s respective bank accounts during a meeting with Bitfinex’s chief financial officer, Giancarlo Devasini. The post alleges that the combined bank accounts of Tether and Bitfinex hold nearly $3 billion USD.
Zhao Dong Seeks to Put Criticisms of Bitfinex and Tether’s Opaque Banking Practices to RestZhao Dong
Zhao Dong, a well known Chinese early adopter of bitcoin, has published a post on Weibo claiming that he has personally seen the bank balances of Tether and Bitfinex first hand during a recent meeting with Bitfinex’s CFO, Giancarlo Devasini. Zhao Dong is a shareholder in Bitfinex, and has been described as one of China’s largest over-the-counter (OTC) traders.
According to a rough translation, Zhao Dong’s Weibo post states “Lao Mao (and I) just had a look at the USD account of Tether and Bitfinex in Giancarlo’s (Boss of BFX, CFO) room, in which Tether’s account holds 1.8x billion USD and Bitfinex holds 1.1x billion USD. The total number of the two accounts is around 3 billion USD, which is beyond the current circulated supply of USDT. This debunks all rumors around USDT.”
Big.one to Introduce USDT After CEO’s Meeting with Giancarlo DevasiniLao Mao (left) and Giancarlo Devasini (right)
The chief executive officer of Big.one published a blog post following the trip, in which an interview between Mr. Devasini and one of Lao Mao’s associates is made public. In the interview, Bitfinex’s CFO claims that the “the team of Bitfinex has around 50 people”, and that the “Tether team does not work for money,” adding that “As an early bitcoin investor, the team has a sense of responsibility and mission.”
Seeking to quell criticisms and concerns relating to Bitfinex and Tether’s banking relationships and capitalization, Mr. Davasini also claims that the companies “are not in a position to fully disclose [their] bank accounts” as a consequence of “pressure from [the] US banking industry.” The CFO alleges that the “US banking industry is blocking Tether by various means,” adding that in future, “Tether may no longer anchor to [the] US dollar,” suggesting that the company may “use Euro, Japanese Yen, or other fiats instead.” Notably, the comments came just two weeks after Tether launched EURT – an ERC20 token intended to function as a hedging tool pegged to the value of the Euro.