A quick recap - Bloomberg published an article on January 30th that is surprisingly long considering how little factual information it contains, originally stating the previous week Bitfinex & Tether came under investigation because of possible USDT fraud.
From the original article:
U.S. regulators are scrutinizing one of the world’s largest cryptocurrency exchanges as questions mount over a digital token linked to its backers.
The U.S. Commodity Futures Trading Commission sent subpoenas last week to virtual-currency venue Bitfinex and Tether, a company that issues a widely traded coin and claims it’s pegged to the dollar, according to a person familiar with the matter, who asked not to be identified discussing private information. The firms share the same chief executive officer.
This played into the emotions of traders who have been fed Tether FUD on Reddit for about half a year now and triggered some panic - some people are selling to lock USD value, some people are buying crypto on Bitfinex and selling on GDAX and Bitstamp as these two exchanges are not using Tether. This resulted in premium on Bitfinex. Quarterly futures overall took the biggest and fastest hit thanks to hedging.
Later Bloomberg corrected their article, now stating the subpoena was from December 6th 2017.
Meanwhile, on Reddit’s r/bitfinex subbredit the Bitfinex rep u/social_bfx keeps repeating the subpoena was related to the Tether hack, as another Bitfinex rep ChrisJ already said on December 3rd on Whalepool (footage is still available from YouTube).
Don’t forget to sell the bottom, folks.