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.
