Cryptocurrency news has been abuzz with recent events as one of the leading cryptocurrency exchanges, Bitfinex, and its affiliated stablecoin issuer Tether have taken legal action against The Wall Street Journal for defamation. The lawsuit arises from an article published by the renowned financial publication, alleging dubious practices and lack of transparency within the operations of Tether and Bitfinex.
The lawsuit stems from an article published by The Wall Street Journal that casts doubt on the integrity and legitimacy of Tether and its parent company Bitfinex. Tether, a popular stablecoin pegged to the US dollar, has been under scrutiny in recent years due to concerns regarding its backing and transparency.
Background of Tether and Bitfinex
Tether is one of the most widely used stablecoins in the cryptocurrency market, known for its purported 1:1 backing by fiat currency reserves. Bitfinex, on the other hand, is a prominent cryptocurrency exchange that shares common ownership and management with Tether. The Wall Street Journal article in question raised serious allegations against Tether and Bitfinex, suggesting that the companies engaged in market manipulation and lacked the necessary reserves to back the Tether stablecoin fully.

Initial Response and Legal Action
In response to the article, Bitfinex and Tether vehemently denied the allegations and announced their decision to pursue legal action against The Wall Street Journal for defamation. The companies emphasized their commitment to transparency and compliance with regulatory standards.
The lawsuit accuses The Wall Street Journal of spreading false information that has damaged the reputation and credibility of Tether and Bitfinex. Both companies argue that the article contains inaccuracies and misrepresentations that have adversely affected their business operations.
The publication of the article had an immediate impact on the cryptocurrency market, leading to a temporary decline in the value of Tether and causing uncertainty among investors. However, market sentiment stabilized as Bitfinex and Tether reassured users of their financial stability.

Legal Implications and Process
The lawsuit against The Wall Street Journal is expected to proceed through the legal system, with both parties presenting their arguments and evidence in court. The outcome of the case could have significant implications for the future regulation and oversight of stablecoins. The lawsuit has garnered widespread media attention, with various news outlets covering the ongoing legal battle between Bitfinex, Tether, and The Wall Street Journal. Public opinion on the matter remains divided, with some supporting the journalistic integrity of The Wall Street Journal and others questioning the motives behind the article.

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Bitcoin miner Argo repays $35M Galaxy bailout loan
Bitcoin miner Argo Blockchain has successfully repaid a $35 million loan to Galaxy Digital, borrowed in 2022 to avoid bankruptcy during the crypto bear market. The loan was part of a broader agreement that included selling Argo’s Helios Bitcoin mining facility in Texas to Galaxy Digital for $65 million and refinancing its debt.
The loan was collateralized by Argo’s “23,619 Bitmain S19J Pro mining machines currently operating at Helios and certain machines located at Argo’s Canadian data centers,” Argo said. As part of the deal, Argo agreed to lease back space in Helios to keep running its Bitcoin mining equipment.
Argo had a hashrate of 2.7 exahashes per second (EH/s) as of the end of 2023. The total hashrate for the Bitcoin network is currently 677.43 EH/s, according to data from CoinWarz. In July, Argo mined 48 BTC, or 1.5 BTC per day on average, the company announced.

Bitcoin price drops below $59,000 as institutions stop buying stablecoins
Institutional investors have halted their accumulation of stablecoins over the past two days, causing Bitcoin’s price to drop below a key psychological level.
During the past 24 hours, the Bitcoin (BTC) price fell 3.9% to trade at $58,930 as of 08:03 am UTC on Aug. 12, falling from a weekly high of $62,510.

The drop below the $60,000 mark was likely caused by institutions stopping their stablecoin buying frenzy, according to an Aug. 12 X post from onchain analytics platform Lookonchain:
“Institutions seem to have temporarily stopped buying, and the price of $BTC dropped 4.5% today! We noticed that institutions stopped receiving $USDT from #TetherTreasury and transferring it to exchanges 2 days ago.”
The lack of institutional stablecoin inflows to crypto exchanges can signal a lack of buying pressure and investor appetite for the underlying asset, as stablecoins are the main on-ramp from the fiat to the crypto world used by investors.
Tether issues the world’s largest stablecoin, Tether (USDT), and has minted over $1.3 billion worth of stablecoins from the market bottom on Aug. 5 to Aug. 9.

Momentum is Shifting Higher for This Crypto
crypto user fat fingers $90,000 fee for a $2,000 ETH transfer
An unknown crypto user appears to have accidentally spent $90,000 in gas fees in what should’ve been a simple transfer of $2,200 in Ether.
The user spent 34.26 Ether (ETH) — worth $89,200 at current prices — in gas to transfer 0.87 ETH, worth just $2,262, according to Etherscan data cited in an Aug. 11 post to X by pseudonymous user DeFiac.

At the time of publication, gas fees on the Ethereum network are hovering at yearly lows of between 2 and 4 gwei, meaning that a transfer of ETH should only cost a maximum of $5.
Expressed as a percentage, the user overpaid by more than 1,783,900%.
It comes despite median Ethereum gas fees hitting their lowest levels in five years, with recent reports that the fee went below 1 Gwei.
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