Welcome back everyone. I am Caspian Sea and I'm not
joined as usual by my partner in crime Bennett Tomlin because
today we're trying something a little different and episode
where I read an old article just trying it out.
Maybe we'll do it more in the future.
Tell me what you think. Finding Phoenix.
It's September of 2018 and my third trip to China this time
for a very particular reason. Bitfenix.
One of the largest crypto currency exchanges in the world
is moving massive amounts of Bitcoin volume along with
hundreds of all coins to. But how do they keep the lights
on and the server's running? The two companies bitfenix and
its sister company tether operate under the same parent
company. Hyphen x, i depart a glorious
Sunny Los Angeles Fall to arrive in a damp sweltering,
thunderstorm late. Hong Kong to find iPhone x or
any physical remnant of this company.
Dominating the crypto landscape. My fascination with finesse and
tether the one to one dollar Peg, stable, coin owned by
iPhone x begins a year before in early December. 2017.
The Bitcoin charts are volatile after a multi-year long bear
Market following the collapse of Mount gox.
The largest Bitcoin exchange between 2010 and 2014 and then
an extended neutral Market, Bitcoin is on a tear from a mere
four thousand dollars. A few months earlier to twelve
thousand dollars now, my first purchase of Bitcoin.
In August, so the enormous gains are difficult to Fathom.
I hadn't anticipated or bull run at all and the fear of missing
out feels very real. Fortunately.
It's at this late stage that I stumble upon a Twitter profile
by the name of bit for next. This Anonymous account fills,
the crypto sphere with unprecedented allegations of
corruption, narcissism and malfeasance.
He claims the crypto currency exchange.
Bitfenix along with the stable coin, at procured tether are
propping up the Bitcoin in altcoin space.
Single-handedly and that without them Bitcoin would merely be
worth a few hundred dollars or even zero.
Many of these statements are hard, if not impossible to
prove. However, he also asks a lot of
compelling questions, for instance, tether.
The one-to-one. Backed stable coin can't seem to
get a proper audit or at a station.
Why not? It connects promised a security
audit after they were hacked for 119 thousand, seven hundred and
fifty six Bitcoin. Where is it?
Why didn't coinbase the US based crypto currency exchange with
accounts on bitfenix at the I'm of the hack, get a haircut like
all the other bitfenix customers.
How in, God's name did 31 million tethers.
Get printed and moved without consent.
No one has answers for these seemingly simple questions and
having been attracted to bitcoin by the Mantra.
Don't trust verify. The fact that no one cares
begins to profoundly bother me. As weeks turn into months my
hobby developed into more of an obsession.
I can't stop dredging up old Bitcoin talk Forum threads about
Fanatics crypto Capital core subsidiaries and shells.
With in shells. I open 100 tabs to display open
corporates information and connections within the icij
leaks. It's obvious that there's some
level of obfuscation occurring, but how much of it is normal
advantageous, corporate loopholes.
Versus intentional is tough to know.
It's time to put in the legwork myself.
All signs for fine, xhq point to Hong Kong.
Why Hong Kong? Well, numerous tipsters clue me
in to the fact that I Phoenix bitfenix and tether all have
offices located in Hong Kong and were originally Incorporated in
the economic free zone. Owing to its history is a
British colony and the establishment of one party to
systems. Hong Kong has long been the
first destination for Chinese Nationals to dump you in and
convert to pounds or dollars. Incorporation is easy requiring
little more than an ID and some cash.
It's also an international Hub banking center Financial
Powerhouse and important port meaning that money has to move
easily. Hopefully without too many
questions. A series of other gray Market
catastrophes, the Panama papers legislation to force
transparency from Caribbean banking centers, and the comex,
Scandal Force companies, that would normally do business
elsewhere to establish. Homes in Hong Kong and suddenly,
it doesn't seem so far-fetched that bitfenix would locate here.
There are. Of course, other addresses for
Phoenix, that point to the British Virgin Islands, Panama
and Switzerland, but odds are that these aren't offices at all
instead PO Boxes with the express intent and purpose of
establishing offshore domiciles for shells and shuffling of
funds besides the CEO that no one ever sees or hears from Ian
Ludovic us vandevelde. Lantau Island, the largest
island in Hong Kong home. Perhaps there does exist in
office, in Hong Kong with employees and Executives to boot
my friend Griffin, a videographer and editor, agrees
to join me in, bring his camera equipment.
So that, if we find evidence of Phoenix employees, we can speak
with a reception desk. Anything we have proof to share
with the world. Hong Kong is as exciting and
steampunk as it gets. There's Ferraris Lambos and
Tesla's on every street corner. While vendors, sell their goods
and cheap diners offered duck or dumplings.
It's Beverly Hills meets skid row with all the neon and LCD
screens of Vegas, Kowloon where we're staying in a cramped
apartment with minimal. Amenities is the Supreme essence
of everything. I imagined Hong Kong to be
before arriving. The poorest people living in the
toughest of conditions mixing with the High Finance Bros from
England. The US, China, and Hong Kong
proper all going to the same open Street Markets and dive
bars with three known addresses. In hand.
We take the MTR or the Hong Kong Subway to Central and walk to
the Bank of America tower. Address one, sweet 13f 1308 Bank
of America, tower 12 Harcourt Road Central.
The Bank of America tower is a landmark in Hong Kong, not
because it's particularly noteworthy or picturesque, but
because it's located at a major intersection in the financial
district walking Bridges flowing into, and out of it bus lanes,
and busy streets, striping its edges.
The interior is nothing to write home about a cross between a
mall and a doctor's office in a Story building.
Somehow we stroll right? Past the guards by the elevators
and ride up to the 13th floor. It isn't what I expect.
There's no open businesses on either side of the large hallway
and the offices of iPhone XR shuttered.
A large piece of plywood being used as a door behind, the
inch-thick painted door. Ish thing, we can hear drills
and saws people shouting at one another.
It's a construction site. When we get back to the first
floor, we recheck all the signage and office listings to
see if I Phoenix is anywhere to be seen.
It isn't we asked the guards if there's an iPhone x somewhere in
the building perhaps unlisted. No, they tell us.
So we move on to a nearby address listed for bitfenix in
the easy commercial building. Address to easy commercial
building. Sweet 1902 25. 3-2 61 Hennessy
Road Wan chai. Dark clouds are gathering in the
distance, but the weather is still humid and hot.
The only Sanctuary from the heat is the subway and even that's
packed to the gills when we step into the lobby, were greeted
with a cold air condition Breeze, and no Garden site.
We check a board with names and entities, but it's all in
Chinese and we can't make heads or tails of it.
We stand silently next to a mom and daughter there to visit a
family member eventually looking at the registered office
address. We determined bitfenix
technology. Is LTD should be on the 19th
Floor. Suite number two.
The only thought I'd had until we entered.
The elevator was that. There'd be no one at these
addresses. Griffin asked me.
What questions? Do you have questions?
Yeah, like, what's the plan? Once we get in there?
The elevator opens and the mother and daughter.
Get out. The door is closed.
I don't know. I finally say Griffin.
Laughs. You haven't thought of any
questions. It's a stunning and sad
revelation. Elevator dings.
We've arrived on the 19th Floor. Better Think Fast Griff says,
Jane chk business. Limited is printed on the opaque
window, framed within the door. We knock and a faint voice says
something in. Cantonese.
The tonality makes me think. We're welcome besides the door's
unlocked. There is a small office with a
few desks fluorescent lights, a water cooler, and a printer in
back are to even smaller, empty offices with their doors open.
240s ish, Chinese women stare at us.
Not sure. Why were there?
Hi, I finally say, we're looking for bitfenix.
Is this bitfenix woman closer speaks up?
What? I start using my hands like an
idiot pointing at the floor and all around as though it'll
somehow translate better. Is this bitfenix?
No, she says, oh, I Ponder my next question for a moment.
Have you heard of bitfenix? Do you, do you know if an ex
Technologies? This is limited.
Yes. Yes.
She says, we do little bit for next.
Paperwork sometime. That's amazing.
It Dawns on me. This response might come across
odd. Do they ever come in?
Do they bring in the paperwork? She shakes her head, no only
paperwork. So, no, bitfenix employees work
here and no bitfenix employees. Come in to drop off the papers.
She again shakes her head now. We thank the ladies for their
time and take off Jane chk business.
Limited. It turns out is not bitfenix.
Address three room 803, ka-wah Center 191, Java Road.
North Point. Our next stop is tether which
supposedly rests on the eighth floor in a glassy blue
postmodern, 1980 Chic, Behemoth of a building sitting right next
to the harbor. Getting in proves to be a little
more difficult. We have to explain ourselves to
a guard, meaning a large fancy front desk.
We say, we're looking for tether give a precise floor and off.
Office address and he smiles and waves us through though.
He admits, he's never heard of tether and doesn't think it's
going to be where we're headed the same nervous.
Energy is before fills me. But even more, this building is
beautiful and classy. Compared to the last.
If I Fanatics and tether do have offices in Hong Kong in this
building. It might be proof that there's
legitimate cash in their reserves.
What if they're willing to sit down for a talk?
What if they have billions of dollars?
What if I see Ian loot? It gets vandevelde.
What if they follow us after we leave the fears.
And questions are, extinguished, gold letters behind a glass
door, read proxy management, Consultants, limited and proxy.
CPA, Co limited certified public accountants.
We push a buzzer and stand idly with our GoPros for a minute.
This office values security, a Chinese woman again in her 40s.
Again, surprised to see to westerners opens the door enough
to speak with us. Us her English is perfect.
Hello. Can I help you?
Yes. I say.
We're looking for tether. This is the listed address.
Is this tether? She shakes her head.
No. No, I see.
And do you work with Heather? Are they a client with every
question? She seems more suspicious.
Now. She says, I've never heard of
tether. Sorry.
Have a nice day. She shuts the door and walks
away. Griffin.
I sit in a coffee shop in the lobby of the not tether HQ.
I am defeated. How's your coffee grif asks?
Fine, it isn't very good. Neither is the brownie.
I'm eating. The tail end of typhoon, manku
is whipping Hong Kong and it starts pouring.
I'm not sure what to make of this, or what to do, with the
knowledge that there is, no, I find X bitfenix, or tether, at
least in a physical sense. Too many these details come
across as banal or trivial. But that continues to be my
motivation for asking, for answers from Phoenix.
This group of companies, has over 10 billion in assets, as of
writing this piece, yet. No, one can provide a location
where you can find Executives or even a receptionist.
There's no one to answer. If the money were to go missing.
There's nowhere to go voice a complaint and there's no one and
nothing to hold responsible. But most disconcerting of all is
that the cryptocurrency community, the community that
Prides itself on advocating for trustless and verification of
facts refuses at every turn to demand that same level of
transparency from a company that's repeatedly promised it
and lied. Again, everyone that was just a
test. If you didn't like it, let me
know reach out on Twitter and or are Discord.
And tell me if you did enjoy it. Let me know.
Or if you have any critiques that you think would be good for
making content like this in the future.
I just want to give you guys something a little bit different
offer something a little bit different than our normal stuff
may be something we could do on a more regular basis if you
enjoyed it. Let me know if you hated it.
Let me know again. Thank you for listening.