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

[Last of the V8s]

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https://twitter.com/udiWertheimer/status/1142705852580868096

A news report this morning in Israeli website @ynetnews on 2 brothers arrested by Israeli police for stealing ~$100k in BTC from victims. No big deal right? Except police says it later found evidence they also stole $100M from Bitfinex users! Is this about the 2016 hack???

The story started here and Udi's question became fact!!1

[PrimeNumber7]

I guess we will see if there is any truth to these people being behind the 2016 hack, or if they just hacked several customers' accounts.

The police spokenmen did not deny the connection to financemagnates, but rather declined to comment. It is possible they had the stolen coins in some kind of cold storage, or was in a hardware wallet protected with a passphraise, or something else that would prevent the police from immediately accessing the coins.

[mayax]

a common sense question: what's the name of Bitfinex's/Tether's bank?

where do they receive the wires from "institutional clients" ?

[squatter]

Does this come off as childish and unprofessional to anyone else? The Block wrote an article about the apparent ease with which NY residents can trade on Bitfinex. This was Bitfinex's response:

Earlier today, we were contacted by Frank Chaparro of The Block seeking comment on a story about an unnamed person opening a Bitfinex account from New York and then withdrawing digital tokens from that account.

We have now identified this user. We correctly flagged this user’s IP address as being in the U.S. Notwithstanding the U.S. IP address — which may be used by Bitfinex customers, as appropriate — our system logs demonstrate that this user represented to us several times that he was not an individual resident in the U.S. This person has lied to Bitfinex on multiple occasions, deliberately and wrongly concealed his location, and flagrantly violated our terms of service.

We think it’s unfortunate that Mr. Chaparro would rather associate himself with these actions than actively attempt to help us uncover and punish fraudulent behaviour on our platform. This kind of ‘gotcha’ sting also speaks volumes about his and our other detractors’ true motivations.

We have disabled the account involved in this case. We reserve the right to report this and other fraudulent behaviours to appropriate authorities. Finally, we remind United States persons that they are not welcome on our platform and that we will continue to take action to enforce our rights and fulfill our legal obligations.

[deisik]

Does this come off as childish and unprofessional to anyone else? The Block wrote an article about the apparent ease with which NY residents can trade on Bitfinex

Childish and unprofessional on whose part exactly?

This user agreed to Bitfinex ToS and by agreeing to them he confirmed that he is not the US resident. Now it turns out that he has deliberately lied about his residency. And what do we have to expect next? Him coming here to complain that the exchange wronged him by blocking his account and taking his money? Why do I have a feeling we have already seen something like that before? Just curious

[malevolent]

Does this come off as childish and unprofessional to anyone else? The Block wrote an article about the apparent ease with which NY residents can trade on Bitfinex. This was Bitfinex's response:

They don't really have much of a choice, do they? They have to show they don't want United States residents using their exchange, and discriminating based on IP addresses used would be unfair towards users using US-hosted VPNs, or bots hosted on US VPSes.

[squatter]

Does this come off as childish and unprofessional to anyone else? The Block wrote an article about the apparent ease with which NY residents can trade on Bitfinex. This was Bitfinex's response:

They don't really have much of a choice, do they? They have to show they don't want to United States residents using their exchange, and discriminating based on IP addresses used would be unfair towards users using US-hosted VPNs, or bots hosted on US VPSes.

The US government doesn't care one bit about articles from The Block nor Bitfinex's announcements. From an optics standpoint, I see nothing to gain from these outbursts. That announcement comes off like amateur hour, like a child trying to get out of being in trouble.

Threatening to report customers to the authorities for clicking "I am not a US resident?" No authorities in the world care if anyone breaks Bitfinex's terms. It seems obvious that the announcement is just hot air and empty threats.

That they felt the need to respond to a little crypto rag in this manner -- it just feels really pathetic to me. Can you imagine businesses like Bitstamp, Gemini or Coinbase talking in this way? Clearly, Bitfinex is a different caliber of exchange.

[deisik]

That they felt the need to respond to a little crypto rag in this manner -- it just feels really pathetic to me. Can you imagine businesses like Bitstamp, Gemini or Coinbase talking in this way? Clearly, Bitfinex is a different caliber of exchange

We don't know what is going on behind the scenes right now

It may look and feel like really pathetic (well, it definitely does) but it is not us who they (Bitfinex) should be afraid of or whose opinion care about at the moment. If you look at it with this perspective in mind, it may make sense after all, given they have a hearing on Monday (if I'm not mistaken), and a judge, or rather the judge, may find it totally appropriate. Once again, we don't see the whole picture, only minute details which make no sense to us. But it doesn't mean that the whole painting is as meaningless

[malevolent]

From an optics standpoint, I see nothing to gain from these outbursts. That announcement comes off like amateur hour, like a child trying to get out of being in trouble.

True, but unsurprising given their history.

That they felt the need to respond to a little crypto rag in this manner -- it just feels really pathetic to me. Can you imagine businesses like Bitstamp, Gemini or Coinbase talking in this way? Clearly, Bitfinex is a different caliber of exchange.

It has been clear right from the day they decided starting an exchange on ashes of a previous failed bucket shop was a smart idea. It's impressive they lasted this long.

[PrimeNumber7]

Does this come off as childish and unprofessional to anyone else? The Block wrote an article about the apparent ease with which NY residents can trade on Bitfinex. This was Bitfinex's response:

I don't think they have a choice. They have a hearing days after the article was going to be released to determine if the NYAG has personal jurisdiction over Bitfinex. Bitfinex is arguing they do not serve US customers, including customers who reside in New York, while the NYAG is claiming to have jurisdiction over Bitfinex in a round about way. The article in question on its face gives credence to the NYAGs argument.

It is well known that Bitfinex has been the subject of a well funded smear campaign that has lasted years. It is also known that some journalists will write articles containing positive coverage for brands in exchange for undisclosed payments (this creates a conflict of interest). I would not put it out of the question to say that some writers are willing to write "bombshell" hit pieces with little to no basis to harm a particular company's reputation.

IIRC, the NYAG has used media reports in their initial application for an injunction against Bitfinex.

[PrimeNumber7]

The NY state judge denied Bitfinex's request to have the Martain act subpoena for documents dismissed based on lack of personal jurisdiction. They have been ordered to turn over documents to the NYAG within 90 days

Bitfinex has already appealed the decision.

[birr]

The NY state judge denied Bitfinex's request to have the Martain act subpoena for documents dismissed based on lack of personal jurisdiction. They have been ordered to turn over documents to the NYAG within 90 days

Bitfinex has already appealed the decision.

How extensive is the demand for documents.  I'm wondering if the NY AG is doing this because they're gunning for U.S. citizens who used bitfinex.  Does the demand cover client records?

[PrimeNumber7]

The NY state judge denied Bitfinex's request to have the Martain act subpoena for documents dismissed based on lack of personal jurisdiction. They have been ordered to turn over documents to the NYAG within 90 days

Bitfinex has already appealed the decision.

How extensive is the demand for documents.  I'm wondering if the NY AG is doing this because they're gunning for U.S. citizens who used bitfinex.  Does the demand cover client records?

The demand for documents is very extensive. I suspect the NYAG is doing this in order to harass a successful business and their customers, but a secondary reason may be to use as a basis for launching an investigation against anyone who looks at a Democrat funny.

Here is the initial petition by the NYAG and here is the original order signed by the judge for the case. You can find additional documents in the docket for the case. 

[squatter]

How extensive is the demand for documents.  I'm wondering if the NY AG is doing this because they're gunning for U.S. citizens who used bitfinex.  Does the demand cover client records?

Maybe really big fish like Galaxy Digital. They are a New York based hedge fund, so they might "maintain custody or control of virtual currency on behalf of others" under BitLicense regulations. Documents uncovered in this investigation could reveal incriminating evidence about businesses like that.

In general, I don't think their mission here is to come after US citizens. It's to come after Tether and Bitfinex. Further, they have no jurisdiction over anyone who is not a New York resident or does not conduct business in New York.

[adaseb]

Is Bitfinex started to do KYC slowly for all accounts?

Looking at their Reddit it seems that more and more people are getting hit with KYC when they attempt a withdraw. Such posts as,

https://old.reddit.com/r/bitfinex/comments/d6i1z6/withdrawal_under_kyc_inquiry_do_bitfinex/
https://old.reddit.com/r/bitfinex/comments/d68vmc/bitfinex_is_illegally_holding_my_money/
https://old.reddit.com/r/bitfinex/comments/d5vilv/my_accounts_have_been_freeze/
https://old.reddit.com/r/bitfinex/comments/d4y0ko/withdrawls_on_hold_for_no_reason/

These are all fairly recent and less than a week old.

I realise that some people's accounts might get some mandatory KYC if the depositted funds are tainted in one way or another but it seems they are hitting more and more accounts with KYC.

[squatter]

Is Bitfinex started to do KYC slowly for all accounts?

Looking at their Reddit it seems that more and more people are getting hit with KYC when they attempt a withdraw.

There's been discussion about this going back a few months. Bitfinex has obviously ramped up their triggers for KYC -- possibly in response to the scathing evidence in the New York case, or possibly in response to meddling from the CFTC who are currently probing BitMEX for allowing US residents.

There are hundreds of these frozen account cases now. I wouldn't recommend that anyone trade on Bitfinex if they aren't comfortable completing KYC.

[adaseb]

Is Bitfinex started to do KYC slowly for all accounts?

Looking at their Reddit it seems that more and more people are getting hit with KYC when they attempt a withdraw.

There's been discussion about this going back a few months. Bitfinex has obviously ramped up their triggers for KYC -- possibly in response to the scathing evidence in the New York case, or possibly in response to meddling from the CFTC who are currently probing BitMEX for allowing US residents.

There are hundreds of these frozen account cases now. I wouldn't recommend that anyone trade on Bitfinex if they aren't comfortable completing KYC.

This rings a bell of what happened with Bittrex and Poloniex in 2017. I had a legacy account on both exchanges and was allowed to trade for many months compared to people who just created a new account and were forced to KYC right away.

I have a feeling that Bitfinex is doing something similar. Basically they might be KYC accounts from newest to oldest and only triggered when a withdraw is attempted. They are probably doing this because if they forced everybody on the exchange at once, it would take forever to verify the documents and resume withdraws.

[attos777]

What happened wit Bitfinex? Yesterday I requested BTC withdrawal. After 10 mins got status "approved". But after 24h still money in "Pending".
Submited support ticket and got strange replay kind of "technical maintenance in progress, you get your btc soon".  I didn't found any public information about btc maintenance.

[JanpriX]

What happened wit Bitfinex? Yesterday I requested BTC withdrawal. After 10 mins got status "approved". But after 24h still money in "Pending".
Submited support ticket and got strange replay kind of "technical maintenance in progress, you get your btc soon".  I didn't found any public information about btc maintenance.

Um, I believe no one from Bitfinex will answer you here. They are not posting any replies here in the past few months. Based on the reply that they provided to you, it must be true that they are really having technical problems on their side. Your best move is to contact them again and ask how long will this problem persist.

I'm quite surprised that some people are still using Bitfinex after the problems that they provided to their users in the last few months and years. 

[attos777]

What happened wit Bitfinex? Yesterday I requested BTC withdrawal. After 10 mins got status "approved". But after 24h still money in "Pending".
Submited support ticket and got strange replay kind of "technical maintenance in progress, you get your btc soon".  I didn't found any public information about btc maintenance.

Um, I believe no one from Bitfinex will answer you here. They are not posting any replies here in the past few months. Based on the reply that they provided to you, it must be true that they are really having technical problems on their side. Your best move is to contact them again and ask how long will this problem persist.

I'm quite surprised that some people are still using Bitfinex after the problems that they provided to their users in the last few months and years. 

Maybe at least someone also have same problem? Because if to be honest, I don't believe in "technical maintenance" for long time without any official announcement.
Moreover, I have email that my withdrawal approved and bla bla bla it take up to 12 hours. Now I have checked my account and they change approval time) But even with new approval time I wait more 12 hours. It's looking absolutely unlike "maintenance"