Bitfinex has vigorously refuted claims that it and its Tether stablecoin are on the rim of insolvency. Rumors have surrounded the opaque exchange for over a year, but beget intensified in the past month. “Bitfinex is not insolvent, and a constant stream of Everyday articles claiming otherwise is not going to change this,” asserts a strongly worded negation.
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Bitfinex Comes Out With All Guns Bombarding
Rumors of Bitfinex and Tether’s potential insolvency have been spinning through the cryptosphere in recent days. Such has been their virality that the normally uncommunicative stock market has taken the step of breaking its silence. In a blog post published today, Bitfinex emphatically refuted all such groundless claims and took aim at critics who “are quick to scream insolvency, seemingly with trifling understanding of what this concept means and what they are approximately talking about”.
As proof of this, Bitfinex posted the address of its BTC, ETH, and EOS unfriendly wallets. They contain almost $1 billion of bitcoin gist, $400 million of ether and $200 million of EOS. Since the bulk of these assets are certainly customer deposits, they do not in fact prove that Bitfinex is reliable. Besides, even the platform’s staunchest critics have not denied that Bitfinex has suggestive crypto assets under its control. Rather, they have combed concerns over its fiat banking arrangements, and specifically the enduring cast doubt upon of whether the $2.8 billion of tethers in circulation are backed by dollar places.
“A Targeted Campaign Based on Nothing but Fiction”
Bitfinex hasn’t minced its undertakings in seeking to rebut the many rumors regarding its business, excoriating a “a objective campaign based on nothing but fiction”, and insisting that customer fiat dregs are working as normal. It’s also insisted that anything that power be going on with Puerto Rico-based Noble Bank, itself the rationale of insolvency rumors, is none of its concern. It’s been revealed that Bitfinex is now banking with HSBC, via an go-between, though it is unclear whether HSBC is aware of this due to funds being funneled totally the private account of Global Trading Solutions.
Bitfinex, currently the globe’s 12th largest crypto exchange by trading volume, has conceded that it has been misery from banking issues, acknowledging:
Complications continue to exist for us in the property of fiat transactions…However, we continue to do our utmost to minimise any waiting times associated with fiat stash aways and withdrawals.
The Bitfinex BTC cold wallet
Certain figures on crypto Titter have been encouraging traders to get their funds off Bitfinex in front of the platform collapses or is shut down by authorities. Both predictions, at this old hat, are likely to be wide of the mark, although Bitfinex’ critics remain recalcitrant. One, operating under the name “Proof of Research”, has posted a rebuttal to Bitfinex’ blog put, pointing out that in the past month “Bitfinex has removed over 77,000 bitcoins from their pocketbook. That amount represents 34% of the total funds that were in that billfold.”
Running a top 20 cryptocurrency exchange, especially one that has been started for as long as Bitfinex, ought to be a very profitable enterprise. Questions motionlessly remain over Tether, however. To date, no journalist has managed to turn up evidence of a customer depositing or withdrawing fiat currency in return for USDT. Until such a speedily, the rumor mill will continue to thrive.
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Images courtesy of Shutterstock, and Bitfinex.
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