Frankie Cavazos

Exposing Tether & Bitfinex fraud
Taking on organized crypto crime
Helped trace $16B+ in seized assets
Fighting for victims of federal crime!

[Frankie Cavazos @FrankieDefi]

@tariqnasheed You stupid fucks need to read fucking law book and put down the retarded victim mindset.

[Frankie Cavazos @FrankieDefi]

@_Re_UPS @GunslingerTX Dude stfu with your victim mindset B.S. Your own kind sold yourselves into slavery, its your own culture that is ruined because you praise dumb ass behavior from your own culture. Enjoy the upvotes from all the Bots that dont even exsits and are on here to stir up shit.

[Patrick McKenzie @patio11]

Just Tether things. How did this conversation go down?

"We recorded our multi-billion dollar related party receivable in a notebook."
"... Of course you did. Where is the notebook?"
"We threw the notebook out."

(This is not compatible with previous statements about records.)

[Frankie Cavazos @FrankieDefi]

Kind of crazy how Hailey Welch — the “Hawk Tuah” girl — got publicly dragged over a meme coin, while projects tied to Trump and Jack Mallers can drop 80–90% and still get conference panels, VC praise, champagne networking parties and Bloomberg interviews.

📉🥂

[Simon Dixon @SimonDixonTwitt]

People clapping like seals at a Bitcoin conference while a Cantor Fitzgerald constructed, Epstein-class Wall Street wrapper loads up Tether-collateralized debt into a Bitcoin treasury company.

This is a securitized exit, designed to margin-call you the moment the financial-industrial complex moves Bitcoin against the $2.1 billion in leverage.

Once you go public and rely on debt, you don’t run your company, the financial industrial complex do.

You don’t leave the mafia.

You become a FIC asset.

It’s not personal.

Its architecture.

As I said would happen.

[Frankie Cavazos @FrankieDefi]

It's a money laundering facility for @tether @Bitfinexed

[Mark Harvey @thepowerfulHRV]

$XXI is down 76% over the past year.

I still can’t figure out what the business even does, even though it is the #2 corporate holder of Bitcoin.

It has no products, no perpetual preferreds, and no development pipeline. Just 43,514 bitcoins.

I’m a big fan of @jackmallers, but what is the plan here?

[Sweep @0xSweep]

Tether is a $184 BILLION stablecoin and has never been audited

Tether is the 17th largest holder of US Treasuries on earth, holding more US government debt than Germany, South Korea, or the UAE.

None of it has ever been verified by a full audit

In 2017 Tether hired Friedman LLP to audit the reserves. Friedman started asking what Tether called "excruciatingly detailed" questions, which is literally what an audit is and the engagement ended

5 years later the SEC fined Friedman 1.5 million dollars for failed audits of public companies during the same period they were looking at Tether

In 2018 Tether's own lawyer Stuart Hoegner said a full audit was "months away, not years"

That was 8 years ago

In 2021 the CFTC fined Tether 41 million dollars for lying about reserves

The regulator found that from June 2016 through February 2019, USDT was only fully backed 27.6% of the time

For 17.5 of those 26 months, the stablecoin "pegged 1 to 1 to the dollar" was not actually backed 1 to 1 to the dollar

In June 2017 Tether had 442 million tokens in circulation and never more than 61.5 million dollars in the bank to back them

The New York Attorney General separately found Tether had secretly lent 850 million dollars of reserves to Bitfinex to cover a hole from frozen payment processor funds

The AG called Tether's claim of full backing "a lie"

In 2024 Tether's CEO Paolo Ardoino admitted the Big Four accounting firms refused to touch the company

His quote: "Why would you risk 100,000 customers for a couple of stablecoins?"

The biggest auditors on earth said Tether was too risky to their reputation

Instead of a real audit, Tether publishes quarterly "attestations" from BDO Italia

Attestations are not audits, they are one day snapshots of what Tether showed the accountant

The BDO reports themselves say the engagement is limited to a single point in time and management's own notes were not subject to any assurance

In March 2026 Tether finally announced they hired a Big Four firm for their first real audit in 12 years but they refused to name it

Tether has promised an audit every year since 2014 and every single one of them collapsed

One company controls 184 billion dollars, holds more US government debt than most countries, owns 148 tons of physical gold, prints a dollar every time someone wants one and has never shown anyone the vault

[Bitfinex'ed 🔥🐧 Κασσάνδρα 🏺 @Bitfinexed]

The SEC could do the funniest thing ever and reopen Justin Suns SEC case…

[Frankie Cavazos @FrankieDefi]

@bitfinex Scamming retail since 2014

[myuzumaki @myuzumaki_com]

1) USDT had no significant inflows for 5+ months
2) Drift gets hacked.
3) Nine days later hundreds of millions of dollars start flowing into USDT. This is new money not a USDC -> USDT swap.
4) Someone sends USDT $800 million.
5) A couple of days later Tether announces they are part of a $150 million "investment" in Drift - a DeFi company that was mostly worthless even before the hack - except for its use as a crypto mixer

[Frankie Cavazos @FrankieDefi]

@SK_HODL @BritishHodl Just sit tight for about 18 months

[Frankie Cavazos @FrankieDefi]

https://t.co/1Az0fJpujJ

[Frankie Cavazos @FrankieDefi]

@Bitfinexed Wow did you read note 8? This is written by the former CFTC Director of enforcement who issued the enforcement action in 2016. He is saying Bitfinex has no claim.. He's the expert.

[Frankie Cavazos @FrankieDefi]

@SBF_FTX @Fityeth Yeah, but why were you dumb enough to think they wouldn't file Bankruptcy. If you want to know who threw you under the Bus, my guess is Tether. They had every incentive to take you down and expose you before they got exposed.

[Frankie Cavazos @FrankieDefi]

@Bitfinexed Bitfinex lawyers are really dumb; they tried to claim LEO tokens in federal court gave them some new form of rights and the judge rejected that theory making LEO worthless. Since that interaction Bitfinex has been trying to raise $20 billion dollars for guess what "Comm. Trading"

[Frankie Cavazos @FrankieDefi]

@MZ1982pk @LibertySwapFi Read the ongoing court case you idiots. Stop getting information from grok that has been trained on nothing but twitter bots.

[Frankie Cavazos @FrankieDefi]

Just to clear up the false claims.. BITFINEX per its one TOS is not the owner of the 2016 hacked coins.. BITFINEX is being dismissed from the case and the court rejected any return to Bitfinex. Bitfinex through Tether is now doing a capital raise for the exact amount they lost.

[Frankie Cavazos @FrankieDefi]

@yuneman @jackmallers @CryptoJiven @MadeByLuckyyBTC @Strike All these cats act like there nothing to audit when Bitfinex gets mentioned. If you idiots have been in the community long enough to give advice then maybe you should start actually reading the law, tracking the coins, and making your own decisions.

[Frankie Cavazos @FrankieDefi]

@yuneman @jackmallers @CryptoJiven @MadeByLuckyyBTC @Strike Read the ongoing cases, Tether is literally being sued for not being backed from 2016-2022 and lying to investors and users. They have never been legal during their rise, and this is being proven in federal court. The are not legal now either.

[Frankie Cavazos @FrankieDefi]

@stansilver2024 @Czigo_P United States v. LICHTENSTEIN, 1:23-cr-00239 – https://t.co/vkALHpIsp8

[Frankie Cavazos @FrankieDefi]

Tether and Bitfinex will face a $20 billion shortfall as they currently are facing a dismissal in court where they would lose about $20 billion in BTC to account holders and the U.S government. Today Tether is looking to raise $20 billion for its "Stablecoin". Convienient.

[Frankie Cavazos @FrankieDefi]

@MiraReserve @grok @Bitfinexed Imagine being such a shill you cant look up a court case. fk tard