[2018-10-03]Bitfinex allegedly partners with HSBC

[J_Crypto]

Bitfinex, one of the largest cryptocurrency trading platforms, allegedly entered into a partnership agreement with the British bank HSBC, while the market discusses rumors about the alarming financial state of Tether, affiliated with Bitfinex.

New rumors about Bitfinex partner banks

Customers suspect that Bitfinex opened an account in one of the largest banks in the world, HSBC. Bitfinex began to receive dollar deposits from customers to a private account of Global Trading Solution, LLC, opened in the US division of HSBC Bank N.A.

It is still unknown where Bitfinex stored its fiat deposits. After its conflict with the US bank Wells Fargo in the spring of 2017 and problems with Taiwanese banks, Bitfinex keeps information about partner banks secret. According to rumors, the cryptocurrency exchange stores its fiat deposits in the Puerto Rican bank Noble, and it also has a partnership with the Dutch ING.

Representatives of the exchange declined to comment on the alleged cooperation with HSBC.

“Bitfinex does not, and has never, commented on actual or potential business relationships and this is not subject to change now,” Kasper Rasmussen, director of communications at Bitfinex, said in an emailed statement.

The financial status of Bitfinex is questionable

A week ago, the crypto market was shocked by rumors about the financial problems of the Puerto Rican Noble Bank, which, presumably, serves the accounts of Tether, the issuer of Tether stable coins and affiliated with Bitfinex.

Noble Bank is “frantically searching for funding,” reported Modern Consensus, citing two high ranked sources, including one at a large cryptocurrency exchange. The situation is so difficult that the bank is said to be struggling to survive, according to the publication.

“If Noble doesn’t get cash soon, they will only have a few days left,” said one source familiar with the matter to Modern Consensus. “They’re desperate.”

Tether itself may be having troubles of its own. One of the largest holders of Tether tried to sell “tens of millions of tethers” without successfully finding a counterparty.

In response to these rumors, Bitfinex published a statement in which it gave references to three wallets for bitcoins, ETH and EOS, whose cumulative balance is worth more than $1.5 billion. Thus, the Bitfinex team tried to prove that the rumors about its insolvency are not true.

http://www.coinfox.info/news/10463-smi-kriptobirzha-bitfinex-vstupila-v-partners

[squatter]

Ah, the Tether debacle continues. It's funny to see Bitfinex hooking up with the world's most infamous "legitimate" money launderer.

Hopefully the rumors are true. I've seen several complaints lately about missing bank wires -- I heard rumors that Bitfinex and Noble had severed ties because of Noble's ongoing operational issues.

Either way, it's a ticking time bomb. There's quite a lot of value held in Tether, and banking problems for mysterious Hong Kong and BVI-registered holding companies trying to move around hundreds of millions of dollars without any licenses -- that should be no surprise. I recall that last year's bull run really started in earnest after Bitfinex's Wells Fargo problems last year. At first, a huge premium developed between Bitfinex, USDT and the rest of the market. But after a while, the rest of the market started chasing and stopped caring that nobody could cash out of Bitfinex.

[rodskee]

Tie up partnership between bitfinex and hsbc a good news if this true not fake news
Bitfinex is one of the largets crypto exchange but have sime many accusations about scamm activities
I think the management need to clear and clean the reputation of bitfinex

[vit05]

The importance of Tether today is very small compared to what it was in the past. But these doubts are still very damaging. Without a doubt, the biggest challenge today for the exchanges is in this fiat-crypto conversion. And this is much more important than the tools of trade; of ICO or platform speed.

It's the only thing that is practically impossible to do with engineering. Since it is a matter of regulation. But the exchange that can develop a system of converting fiat into crypto with low cost, safe and fast will be a great global leader.

[Lucius]

Ah, the Tether debacle continues. It's funny to see Bitfinex hooking up with the world's most infamous "legitimate" money launderer.

It's obvious that they are looking for a business partner who does not ask for the origin of money and who works in a completely parallel financial system compared to most banks in the world. HSBC is so strong that they managed to avoid shutdown of their operation in USA despite all the evidence they have against them, which is not surprising since we know that top UK politicians have a deep connection with this bank.

Tie up partnership between bitfinex and hsbc a good news if this true not fake news
Bitfinex is one of the largets crypto exchange but have sime many accusations about scamm activities
I think the management need to clear and clean the reputation of bitfinex

If this is true news then it is just sign that Bitfinex is going even deeper in shady waters, partnership with HSBC can not contribute to reputation of any exchange, just the opposite.

[1Referee]

The importance of Tether today is very small compared to what it was in the past.

Mind elaborating on why you think that is? I don't see Tether be any less relevant than it was a year or so ago.

People often don't realize how supporting Tether is to this ecosystem. It's practically the only way capital is somewhat forced to stay and be re-used at a later point, all because most of the entities holding that token don't want to have anything to do with Bitfinex. It's literally capital waiting to be put in action, which is why Tether is definitely going to boost any sort of upward momentum in the forthcoming years.

The only way for this market to make Tether less relevant, is to have 'genuine' parties launch their own stablecoin, or have actual fiat pairs gain more dominance.

[stompix]

Mind elaborating on why you think that is? I don't see Tether be any less relevant than it was a year or so ago.

People often don't realize how supporting Tether is to this ecosystem. It's practically the only way capital is somewhat forced to stay and be re-used at a later point, all because most of the entities holding that token don't want to have anything to do with Bitfinex. It's literally capital waiting to be put in action, which is why Tether is definitely going to boost any sort of upward momentum in the forthcoming years.

The only way for this market to make Tether less relevant, is to have 'genuine' parties launch their own stablecoin, or have actual fiat pairs gain more dominance.

And that is a big no! We are going to change from Zimbabwe dollars to Bolivars. Any crypto that is issued by somebody promising it is stable against something will end up bad one day.

I'm amazed also how people tend to minimize the effect of some driving factors behind the volume in cryptos. They say tether has no effect they do claim that BTC would not be influenced by a banking ban (lol, especially since the news with Zebay). People are starting to forget it's not 2010 anymore when you had 1000 guys doing trades.

The whole crypto business is becoming a more and more complex environment and if any of the main driving force behind this will sneeze everyone will feel it.

And, I'm  surprised by this, as I went to check USDT volume...Almost the same as ETH, EOS and XRP combined. . Yeah...irrelevant ....