Cryptocurrency exchange Bitfinex’s Chief Security Officer, Phil Potter is leaving the trading platform. He is leaving on account of the Cryptocurrency exchange withdrawing its services to U.S citizens.
He said, “As Bitfinex pivots away from the U.S., I felt that, as a U.S. person, it was time for me to rethink my position as a member of the executive team. It’s been an incredible journey over these past four years, and while I wish my colleagues success and good fortune in their ongoing endeavours, I am also looking forward to new opportunities for myself in the days ahead”.
He also decided to quit Tether Ltd. Tether Ltd is a crypto exchange that deals in U.S dollars and shares management with Bitfinex. Chief Executive JL van der Velde will replace Potter for the time being, said the company.
Bitfinex, owned by British Virgin Islands company. It is the fourth largest cryptocurrency exchange in the world which specializes in trading in bitcoin and etherereum. Bitfinex withdrew from the U.S marketplace in 2017. They told the revenue from U.S individual accounts were too low. They added that a huge portion of funds goes into servicing these accounts. The cryptocurrency exchange said that, “compliant banking solutions for U.S. individuals remain elusive”.
Bitfinex predicts the U.S market to be tougher to handle in the future. “Exchanges in the U.S are better positioned to properly service U.S customers”, wrote Bitfinex. Bitfinex faced allegations in the past year when the University of Texas published a research paper. The paper argued that Tether’s token could have been used to manipulate Bitcoin’s price last year. However, the cryptocurrency exchange has dismissed these claims.
Tether was also questioned on their claims of holding one dollar for every Tether in circulation. To curb the allegations Tether released an analysis of their bank accounts. But it was not an audit report Reuters reported.
“Phil has been instrumental in developing our business as a key senior team member over the past four years. Bitfinex will continue to focus on strategic global initiatives while Phil pursues other opportunities,” said J L van der Velde in an emailed statement.
Image via Medium
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