Bitcoin Forum

One of the largest cryptocurrency exchanges, Bitfinex, once again denied rumors of its possible bankruptcy and declared full solvency.

Last week Bitfinex has made an official statement in which it described the situation forced stop receiving deposits and payments in Fiat currencies. Not only Bitfinex has problems with banks. So, Bitcoin on the Hong Kong exchange in recent days is much more expensive than on most other crypto exchange platforms. At some points, the premia reached $ 110.

Read more https://bit.news/eng/in-bitfinex-explained-who-and-why-spreads-rumors-about-the-possible-exchange-bankruptcy/

Bitfinex doing some damage control now. Rumors has been spreading and this is a PR nightmare to them. But I hope they would allow withdrawals then just declare bankruptcy. They have already created too much problem for the crypto community. First the hacked, then withdrawal problems. They cannot be trusted anymore. And it would very difficult to gain the confidence of traders and investors to their platform. I believe that they are talking to other trading platforms and trying to make a sell, otherwise collapsed is imminent.

It is indeed a full on liability, but they're dysfunctional and not insolvent. I get the feeling their legal and regulatory set up is a such a kludge that they'll never be able to find another banking relationship.

Let's not forget that their problems aren't Bitfinex specific. Many other places operating through Taiwan have the same problem and they all chose Taiwan because its regulations are slacker than elsewhere. It won't go back to how it was whatever happens.

They should do a one time fiat closure, which surely must be possible, and then switch to crypto only. They might end up making more money. I still wouldn't use them.

After the last disappeared on the international exchanges Bitfinex, I'm not sure what it is worth to trust such opportunities. If they are cheating as before your no cryptography will not save.

What nobody is talking about is the rapidly expanding amount of Tether that BFX is issuing.

This is like fiat on steroids, like QE-Infinity with no legal recourse if you can't redeem your tokens. It seems to be custom-made for this "crisis" that BFX is having.

Another suspicious trend is the premium between Bitstamp and BFX has shrunk from 10% to 5%, which suggests that someone on the inside is able to transfer their money out, even with BFX's claims otherwise. The owner of the exchange has been caught saying that he's "talking to their biggest customers", which to me makes me think he's catering to a few whales to keep his paycheck coming. Not that it surprises me at all.

So, the supply of Tether has been rapidly inflated, they aren't letting any USD out, and redeeming Tether could be cut off at any point, and they'd be legally covered.

Sounds like someone has a nice scam brewing.

I guess we won't see the conclusion until all the whales pull out. Then there will be nothing left to protect, so BFX can allow the inflated Tether market to crash due to USD/Tether redemption demands. (But I bet you they won't redeem tethers at parity, probably at a fraction citing some "unforseen difficulties")

Just watch....

They've said that anyone with a Taiwanese bank account can get money in and out fine, it's when you have to send it abroad that you hit a wall. I presume that means there are a few people with accounts there arbing the shit out of it which might explain the contracting spreads.

But yes, I think something's brewing for Bitfinex's final buttfuck. It's never been anything other than a liability.

The impression is that this exchange very much repeats its mistakes again and again. I can not understand why users are still working with Bitfinex.