[OFFICIAL]Bitfinex.com first Bitcoin P2P lending platform for leverage trading

[malevolent]

Binance was hacked multiple times last year, loosing a billion dollars plus and used reserves to cover the losses.

Wait, what? Source? Or are you talking about a different exchange?

Binance was hacked multiple times last year, loosing a billion dollars plus and used reserves to cover the losses.

I don't know this, source?

Binance was hacked multiple times last year, loosing a billion dollars plus and used reserves to cover the losses.

Binance was never hacked buddy or they didn't say it

Binance was hacked multiple times last year, loosing a billion dollars plus and used reserves to cover the losses.

Link please.

https://binance.zendesk.com/hc/en-us/articles/360028031711

So far it doesn't seem that Binance themselves got hacked, but that they were simply unable to save less cautious users from themselves.

[Quickseller]

Binance was hacked multiple times last year, loosing a billion dollars plus and used reserves to cover the losses.

Wait, what? Source? Or are you talking about a different exchange?

Binance was hacked multiple times last year, loosing a billion dollars plus and used reserves to cover the losses.

I don't know this, source?

Binance was hacked multiple times last year, loosing a billion dollars plus and used reserves to cover the losses.

Binance was never hacked buddy or they didn't say it

Binance was hacked multiple times last year, loosing a billion dollars plus and used reserves to cover the losses.

Link please.

https://binance.zendesk.com/hc/en-us/articles/360028031711

So far it doesn't seem that Binance themselves got hacked, but that they were simply unable to save less cautious users from themselves.

In regards to the billion dollar loss incurred by binance, I am having trouble finding a link to support this. iIRC it was from a hack in late 2017 or early 2018, and it may have been another exchange. I will keep looking.

In regards to the hack today in the amount of 7k btc, the available facts make it appear API and 2FA keys were stolen from their customers, although it may have been the hacker somehow tricking binance into creating new keys for each customer whose account was withdrawn from.

[perri]

https://cryptoslate.com/bitfinex-users-unable-withdraw-funds-430-million-drained-exchange/

When it's Binance/Bitfinex, everyone seems fine.
But when it comes to other exchange (take HitBTC for example), everybody loses their shits. Lol standard standard 

[edulo]

Beware of your Bitfinex accounts. They entered my account, removed my orders and exchanged all my coins for PASS. My account went from 400usd to 30usd. All movements are registered.
Bitfinex is not responsible. Who else happened to him?

[DebitMe]

Looking to start using bitfinex for lending again, how has the site been recently? Any issues with the site or reasons why it would be a bad idea to use them?  How have rates been recently? Are they better elsewhere?

[figmentofmyass]

Looking to start using bitfinex for lending again, how has the site been recently? Any issues with the site or reasons why it would be a bad idea to use them?  

they're facing some pretty scary legal issues and were technically insolvent not long ago. they had $850 million seized by law enforcement agencies, then used a loan from tether to cover the shortfall. the NY attorney general obtained a court order against both companies. the USDOJ is also in the middle of a criminal probe of both companies.

so i would account for the legal risks when considering whether to loan there.

[Quickseller]

Looking to start using bitfinex for lending again, how has the site been recently? Any issues with the site or reasons why it would be a bad idea to use them? 

they're facing some pretty scary legal issues and were technically insolvent not long ago. they had $850 million seized by law enforcement agencies, then used a loan from tether to cover the shortfall. the NY attorney general obtained a court order against both companies. the USDOJ is also in the middle of a criminal probe of both companies.

so i would account for the legal risks when considering whether to loan there.

Bitfinex was able to raise a billion dollars that was presumably used to repay the loan to tether.

The NYAG action has more or less been won by Bitfinex -- they no longer have to produce documents to the NYAG, and the order obtained by the NYAG has been reduced to prohibit bitfinex and tether from conducting related party transactions for some number of months.

[squatter]

Bitfinex was able to raise a billion dollars that was presumably used to repay the loan to tether.

The NYAG action has more or less been won by Bitfinex -- they no longer have to produce documents to the NYAG, and the order obtained by the NYAG has been reduced to prohibit bitfinex and tether from conducting related party transactions for some number of months.

The fact that Bitfinex lost the $850M to begin with is alarming, though. They can't launch a token every time this happens. The market won't keep bailing them out -- it needs to not happen again. That risk is real.

The NYAG had no power to do anything. I don't even understand what they were trying to accomplish. I'd be a lot more concerned about federal agencies. They spend years building cases before pouncing. The CFTC investigation goes back something like 1.5 years.

[DebitMe]

Looking to start using bitfinex for lending again, how has the site been recently? Any issues with the site or reasons why it would be a bad idea to use them? 

they're facing some pretty scary legal issues and were technically insolvent not long ago. they had $850 million seized by law enforcement agencies, then used a loan from tether to cover the shortfall. the NY attorney general obtained a court order against both companies. the USDOJ is also in the middle of a criminal probe of both companies.

so i would account for the legal risks when considering whether to loan there.

Bitfinex was able to raise a billion dollars that was presumably used to repay the loan to tether.

The NYAG action has more or less been won by Bitfinex -- they no longer have to produce documents to the NYAG, and the order obtained by the NYAG has been reduced to prohibit bitfinex and tether from conducting related party transactions for some number of months.

Thank you for the information, it seems like they would still be reliable to use for the time being, at least for small amounts.

[deisik]

Bitfinex was able to raise a billion dollars that was presumably used to repay the loan to tether.

The NYAG action has more or less been won by Bitfinex -- they no longer have to produce documents to the NYAG, and the order obtained by the NYAG has been reduced to prohibit bitfinex and tether from conducting related party transactions for some number of months.

The fact that Bitfinex lost the $850M to begin with is alarming, though

Are you sure about the lost part?

If I'm not mistaken the funds have been locked (arrested). It is not like they were irrevocably confiscated or something to that tune. And given that Bitfinex generally follows the legal path and battles in courts (unlike the infamous WEX), there is a good chance they will get their money back, at least some part of it (hopefully, the biggest part). That's likely the reason why the market has been so indulging and bailed them out

I'd be a lot more concerned about federal agencies. They spend years building cases before pouncing. The CFTC investigation goes back something like 1.5 years

Okay, they have built their case and taken Bitfinex to court, what's next? The agency in question (CFTC) had already fined the exchange a few years ago. For something like 60 grand (if my memory serves me right). Pretty insignificant amount compared to 850M in custody right now

[squatter]

The fact that Bitfinex lost the $850M to begin with is alarming, though

Are you sure about the lost part?

If I'm not mistaken the funds have been locked (arrested). It is not like they were irrevocably confiscated or something to that tune.

They've been seized by multiple law enforcement agencies for links to drug cartel money laundering. In cases like these, recovering the money is possible but unlikely. I certainly wouldn't plan on it. That's why Bitfinex quickly launched the LEO token fundraising effort as soon as the news broke. They know full well they're not getting the money back.

This also raises concerns about future seizures. Bitfinex operates from unregulated jurisdictions without any licenses. It's hard to imagine this happening to Coinbase or Gemini, but I could certainly imagine it happening to Bitfinex again.

I'd be a lot more concerned about federal agencies. They spend years building cases before pouncing. The CFTC investigation goes back something like 1.5 years

Okay, they have built their case and taken Bitfinex to court, what's next? The agency in question (CFTC) had already fined the exchange a few years ago. For something like 60 grand (if my memory serves me right). Pretty insignificant amount compared to 850M in custody right now

That was a very different CFTC investigation for margin custody arrangement from several years ago.

This investigation is for market manipulation. It was launched at the end of 2017 and the DOJ launched a parallel criminal investigation in late 2018. The DOJ is the agency that shut down BTC-e in 2017.

[deisik]

The fact that Bitfinex lost the $850M to begin with is alarming, though

Are you sure about the lost part?

If I'm not mistaken the funds have been locked (arrested). It is not like they were irrevocably confiscated or something to that tune.

They've been seized by multiple law enforcement agencies for links to drug cartel money laundering. In cases like these, recovering the money is possible but unlikely. I certainly wouldn't plan on it. That's why Bitfinex quickly launched the LEO token fundraising effort as soon as the news broke. They know full well they're not getting the money back

The devil is in paying precious attention to detail

I'm not sure either that they are going to get the dirty money back, but how much of the seized amount actually belongs to an alleged drug cartel? You make it look like all 850M is that money but is it really so? If it is not and we have strong reasons not to believe it is, they will get some part of the funds back eventually. Yes, it may take years and that seems to be the primary reason for the fundraising on the Bitfinex part

This investigation is for market manipulation. It was launched at the end of 2017 and the DOJ launched a parallel criminal investigation in late 2018. The DOJ is the agency that shut down BTC-e in 2017

Then again you make it look like the DOJ just shut down BTC-e all of a sudden (after an undisclosed investigation). But this is not the case. It was total unwillingness on the exchange part to solve issues legally. That's obviously not the case with Bitfinex who are willing to vigorously and enthusiastically fight in court as the NYAG case clearly and unequivocally shows. At worst, they will pay some fines and get away with it. In fact, market manipulation accusations are not a rare thing anyway as even the largest regular exchanges have been through this before

[malevolent]

They weren't even able to shut them down, they just seized some servers and money in some bank accounts, and within a few weeks btc-e resumed operations under a new name (wex). About a year later they shut down due to internal disputes, among other reasons though.

Bitfinex is at least trying to pretend they care about nosy regulators, so I think worst case is they get bought out by a more 'legitimate' exchange.

[illyiller]

I'm not sure either that they are going to get the dirty money back, but how much of the seized amount actually belongs to an alleged drug cartel? You make it look like all 850M is that money but is it really so? If it is not and we have strong reasons not to believe it is, they will get some part of the funds back eventually. Yes, it may take years and that seems to be the primary reason for the fundraising on the Bitfinex part

Haha, good luck dude. The operators of Crypto Capital just went down for banking fraud, unlicensed money transmission, and related conspiracy charges. That money will never, ever be repaid. It's not a matter of time. Bitfinex has no standing in the case and the money is tainted. The governments involved are just going to pocket the money like in all civil forfeiture cases.

[mayax]

They weren't even able to shut them down, they just seized some servers and money in some bank accounts, and within a few weeks btc-e resumed operations under a new name (wex). About a year later they shut down due to internal disputes, among other reasons though.

Bitfinex is at least trying to pretend they care about nosy regulators, so I think worst case is they get bought out by a more 'legitimate' exchange.

A 'legitimate' exchange would apply and take a financial license ANYWHERE. Why don't they want it? It's easy to respond. A financial license means that you cannot do whatever you want with your clients money as Bitfinex gang do now...

Bitfinex is just a fraudulent company. They are hiding their "bank accounts",  they are hiding their "real office" (if there is one). How can someone use a such exchanger and why?

It's a matter of time until they will be closed overnight.

[figmentofmyass]

Then again you make it look like the DOJ just shut down BTC-e all of a sudden (after an undisclosed investigation). But this is not the case. It was total unwillingness on the exchange part to solve issues legally. That's obviously not the case with Bitfinex who are willing to vigorously and enthusiastically fight in court as the NYAG case clearly and unequivocally shows. At worst, they will pay some fines and get away with it. In fact, market manipulation accusations are not a rare thing anyway as even the largest regular exchanges have been through this before

it wasn't about "solving issues". in the view of the USA government, they were committing crimes. BTC-E openly operated as a money transmitter without license for 6 years and didn't implement proper AML/KYC controls. as a result, the feds seized their domain, servers, bank accounts, etc. in fact, the indictment was under seal (hidden from BTC-E and the public) until the seizures occurred.

bitfinex similarly operated as an unlicensed money transmitter for ~4 years until they finally prohibited americans. that's one potential charge against them. but it seems like the feds are more interested in market manipulation, which stems from activities in 2017.

i'm amazed that people think bitfinex will keep getting away scot free. the DOJ doesn't just fine people. they aren't the CFTC. their investigation is a criminal one, not a civil one.

[PrimeNumber7]

bitfinex similarly operated as an unlicensed money transmitter for ~4 years until they finally prohibited americans. that's one potential charge against them. but it seems like the feds are more interested in market manipulation, which stems from activities in 2017.

The NYAG disagrees with this:

https://cdn.bnktothefuture.com/app/private/doc_files/444/other_BITFINEX_RESPONSE.pdf?1556704899

9. BFXNA is registered with the United States Department of the Treasury Financial Crimes Enforcement Network as a money transmitter.

[figmentofmyass]

bitfinex similarly operated as an unlicensed money transmitter for ~4 years until they finally prohibited americans. that's one potential charge against them. but it seems like the feds are more interested in market manipulation, which stems from activities in 2017.

The NYAG disagrees with this:

https://cdn.bnktothefuture.com/app/private/doc_files/444/other_BITFINEX_RESPONSE.pdf?1556704899

9. BFXNA is registered with the United States Department of the Treasury Financial Crimes Enforcement Network as a money transmitter.

registering with FINCEN ≠ obtaining money transmission licenses, which are issued at the state level. FINCEN registration is required for MSBs but not sufficient to comply with all money transmission laws. coinbase, for example, has obtained several dozen money transmitter licenses to wire proceeds to/from their USA customers: https://www.coinbase.com/legal/licenses

i do think BTC-E's failure to register with FINCEN was a real slap in the face to the feds though, so there's that.

[PrimeNumber7]

There are some reports the hacker from the 2016 Bitfinex hack has been arrested. I would take this with a grain of salt until there are confirmations from reliable sources.

https://cointelegraph.com/news/report-two-israeli-brothers-arrested-for-hack-of-bitfinex-crypto-exchange

[squatter]

There are some reports the hacker from the 2016 Bitfinex hack has been arrested. I would take this with a grain of salt until there are confirmations from reliable sources.

https://cointelegraph.com/news/report-two-israeli-brothers-arrested-for-hack-of-bitfinex-crypto-exchange

I don't think so. The authors of both the Cointelegraph article and the Finance Magnates article it's sourced from seem confused. This is all that was reported on Finance Magnates:

Another suspicion that was raised by the investigators was the brothers’ alleged connection to a 2016 hack of several accounts that traded on Bitfinex. However, the police spokesman refused to elaborate on that matter.

According to the Israeli Police, the victims are mostly EU and US citizens, and therefore the case is currently being investigated by “police cyber units in several countries”.

I could be wrong, but it doesn't look there's any real connection to the 2016 Bitfinex hack. These guys just hacked a bunch of Bitfinex accounts and emptied them out. The author of the Finance Magnates article misspoke and said it was the 2016 Bitfinex hack. Cointelegraph -- being the trash that it is -- repeated it without fact checking.