A Discussion On How The Bitcoin Exchange Itbit Gets A New York State Trust Company Charter After Raising $25 Million

Why is itBit coming to the forefront with $ 25 million raised as funding? Learn more on Tether as it suffered another hacker attack. 

How Is itbit Performing? 

There is ItBit which is a Bitcoin exchange operating in New York as well as Singapore that has been approved as New York State Trust Company that is also adding any number of heavy hitters to its board of directors on the heels of a $ 25 million round from new and existing investors. Thereby according to itBit chief executive and co-founder Charles Cascarilla the trust allows itBit to be a custodian for its client’s funds which is a much higher duty of the care that any one of the Bitcoin companies is regulated under right now. Therefore it took us 15 months as a well over a thousand-page application as extremely in-depth extremely time-consuming and not easy to do.

Taking into account the issue is of proper approvals from regulatory agencies becoming more important on the heels of the news that the Financial Crimes Enforcement Network has fined Ripple Labs $ 700,000 for acting as a money service business without filing the proper paperwork. Further on, though the fine may be restricted to Ripple where itBit says it’s not taking any chances. According to Cascarilla, there is a whole financial system that is risk-averse after 2007 and 2008 as its not good enough to get a bank to deal with you as a counterparty. It is observed that currently, itBit is the only US chartered and supervised Bitcoin exchange that’s compliant with both New York and the federal law. 

What Then Is Itbit Up To?

It is then that the pains that itBit has taken to jump through regulatory hurdles have won it the support of heavy hitters like former Senator Bill Bradley, the former chair of FDIC, Sheila Bair, and also the former chair of the financial accounting services board, Robert Herz. It was then that the company that closed a Series A round of $ 25 million from those investors including RRE Ventures, Liberty City Ventures, and individual investor Jay W. Jordan II, they had invested alongside previous investors Raptor Capital Management chair James Pallotta.

Hereby Bitcoin has the potential to transform the world of finance as we know it today according to itBit board member Bill Bradley in a statement as itBit can truly become the backbone of what is the entire Bitcoin ecosystem helping elevate the importance in finance, commerce and building new economies. 

There is Tether, which is a startup working with Bitcoin exchanges, that claims a hacker stole $31M

As Bitcoin has cruised past $ 8,000 it hasn’t been smooth sailing for all after tether, which is a company helping exchanges convert fiat currency to a token where a hacker had snatched nearly $ 31million. Thereafter Tether operates USDT, a cryptocurrency asset-backed via the US dollar as the company said that $ 30,950,010 worth of USDT taken from its core treasury wallet through malicious action by an external attacker.

Thereafter in response Tether said it has flagged the tokens which means that it will track them and prevent the holder from exchanging them through its service and that which is working to recover them. Thereby for partners, the backend wallet service should surely have been suspended. Subsequently, Tether said it will investigate the incident while it rolls out an update to Omni Core software for partners preventing the stolen coins from recirculating into its ecosystem essentially locking them into the alleged hacker’s wallet.

One of the partners that use Tether is indeed crypto exchange Bitfinex losing 119,756 Bitcoin then worth $ 72 million but valued at over $ 950 million today that was in a hack over a year ago.

To Sum Up The Discussion

Finally, according to Coindesk reports, there was an incident that is sure to throw up more questions about the relationship between Tether as well as the secretive exchange Bitfinex where the duo are rumored to shareowners and thereby accuse of leaning on each other to manipulate the market where already theories are circulating that suggest this new attack could be an inside job.

It is a fact that bitcoin’s value took a dent when the news finally came out as it quickly recovered whereas at the time of writing the bitcoin’s value stood at $ 8,126.71 that was down 1.35 percent over the 24 hours according to the Coindesk. This is the current scenario in the Bitcoin ecosystem that is taking note of the best performances as well as depressing actions by hackers. The discussion carries on. 

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