Bitfinex Responds to Insolvency Rumors

Bitfinex Responds to Insolvency Rumors

During the weekend, a Medium post by ProofofResearch cautioned readers to leave Bitfinex. For now, the Medium post has been removed

The post claims that grievances regarding restricted and frozen withdrawals shared on Reddit depict the exchange’s insolvency. The post also alleged the moderators of r/bitfinex are censoring posts related to the said issue.

Public Wallet Links

Bitfinex chose to respond through a blog post to deny the allegation. It states the exchange is not insolvent. They are working with a small team and operating on low costs.

The exchange also presented links to their public wallet addresses to disprove the rumors.

Normal Cryptocurrency and Fiat Withdrawals

According to Bitfinex, verified clients can withdraw Euros, US Dollars, Pounds Sterling, and Japanese Yen without restraint. They are doing their best to reduce waiting time for fiat deposits and withdrawals.

Noble Bank Bankruptcy

The exchange said the bankruptcy of former partner Noble Bank does not bear any impact on the solvency, survival, and operations of the company.

Reference: Bitfinex has been around since 2013. In 2015, they established fiat operations to accommodate traders across the globe who wanted to go into cryptocurrency trading. Over the weekend, news about their new banking partnership with HSBC was reported.

Related news

Bitfinex Attempting to Dismiss Tether Class Action Lawsuit

Bitfinex announced its intent to dismiss a Tether-related class action lawsuit, calling its allegations “ridiculous”. Filed on Oct. 6, the lawsuit alleges that Bitfinex and Tether operated a “sophisticated” scheme aimed at defrauding investors and manipulating the market.   Class Action Complaint The lawsuit asserts that Tether lied when claiming that every issuance of USDT was fully covered by money in its bank account. The supposed perception that each USDT generated was an additional dollar invested in the cryptocurrency market increased trader confidence, the lawsuit theorizes. Tether is then accused to have issued an “extraordinary amount” of unbacked coins in order to manipulate cryptocurrency prices, and therefore pumped this surge of Tether onto the Bitfinex exchange. Consequently, prices increased and trading spiked. According to the lawsuit, this manipulation resulted in “the largest bubble in human history.” About $450 billion in value subsequently vanished in less than one month. Other defendants named include Digifinex, the majority owner of Bitfinex and Tether, Crypto Capital Corp, and Global Trade Solutions AG. Bitfinex and Tether Fight Back Bitfinex listed three key arguments that support dismissal of the complaint. First, it highlights that the complaint heavily relies on an “unpublished” academic paper with “methodological flaws” by John Griffin and Amin Shams, which was recently amended to “walk back” its support for the complaint. Second, Bitfinex claims that there were numerous factors influencing Bitcoin’s run in 2017.  Finally, the exchange argues that it would be impossible to manipulate a market “more than seven hundred times the size of total Tether USDT issuances in circulation” — believing any “sophisticated and rational” person would agree with this statement. Bitfinex concludes the response pledging to continue fighting the plaintiffs and “defend the cryptocurrency community”. The post Bitfinex Attempting to Dismiss Tether Class Action Lawsuit appeared first on Crypto Briefing.

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