The chief strategy officer at one of the largest cryptocurrency exchanges, Bitfinex, is apparently leaving the exchange and will be replaced on an interim basis by J.L. van der Velde who is the company’s chief executive officer.
The news comes from Reuters, where a company spokesperson told the press that Potter’s departure was a “mutual” parting. Potter, on the other hand, believed it was time to leave the exec team and seek new opportunities. According to him, Bitfinex currently “pivots to other strategic international markets” as the statement provided by the exchange said.
This move has sparked a lot of questions around Bitfinex – mostly because of its association with Tether which is a company that issues a cryptocurrency tied to the US dollar. The critics said that USDT (Tether) actually holds $1 in reserve for every token that it issues – sharing management with Bitfinex.
Tether is currently under investigation by the regulative bodies, law firms, and analysts. Some critics have claimed that it operates with a fractional reserve to inflate bitcoin’s price and hide the exchange’s insolvency.
Meanwhile, the regulators have increased the scrutiny of cryptocurrencies after the last year’s price rally. Right now, the Department of Justice and the US Commodity Futures Trading Commission (CFTC) are reported to be investigating the Bitcoin price manipulations.
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