Exchanges

Bitfinex Slams Insolvency Allegations, Reveals Part of Bitcoin (BTC), Ether (ETH), and EOS Holdings

Bitfinex Slams Insolvency Allegations, Reveals Part of Bitcoin (BTC), Ether (ETH), and EOS Holdings

Cryptocurrency exchange Bitfinex addressed allegations and controversies propagated against its platform in recent times via a detailed Medium post on Oct. 7, 2018.

Bitfinex Fights Allegations

The Hong Kong-based company remains one of the world’s oldest running cryptocurrency exchanges and has maintained a strong reputation for security save a ghastly event in 2016 which saw 120,000 BTC, or $72 million at the time, leave the bourse.

In its post, the firm highlighted its four-year operational period has seen several “ups and downs,” and continues to face the scrutiny of “watchful investigators” looking to bring the exchange’s credibility to the ground. Bitfinex notes some of the naysayers predict the fall of the cryptocurrency market as a whole.

Some of those parties have “screamed” for the insolvency crypto-bourse, which Bitfinex calls out as the naysayers having no adequate knowledge, little understanding of the concept, and how insolvencies take place.

The exchange provided the wallet addresses of its Bitcoin, Ether, and EOS holdings to prove its finances and address any future rumors that may arise if the allegations continue. Bitfinex strongly claimed they are “not insolvent,” and pointed out the flurry of Medium articles propelling such claims will “not change this.”

Exchange Maintains Credible Stance

Bitfinex pointed out their operating costs are a minimum, and a small team runs their business. In this regard, the exchange explained arguments proving their insolvency are baseless accusations and fail to provide a robust explanation.

With the above points mentioned, the post stated:

“How any rational party can claim insolvency when the opposite is there for all to see is interesting and, once again, perhaps indicative of a targeted campaign based on nothing but fiction.”

Addressing recent claims that the platform did not honor fiat and cryptocurrency withdrawals, Bitfinex maintained that verified users continue to “freely withdraw” euros, pounds, yen, and dollars. However, they acknowledged that some complications exist for fiat withdrawal, but the problem is industry-specific and not localized to Bitfinex.

Lastly, Bitfinex pointed all connections to Puerto Rico-based Noble Bank, and the latter’s lack of liquidity had no impact on the former’s business, operations, survivability, and solvency. The statement comes after rumors circulated last week about Tether holdings stuck in Noble, of which Bitfinex is a large holder, leading naysayers to speculate the exchange was in jeopardy if it’s chief custodian were to close someday soon.

Cover Photo by rawpixel.com on Pexels

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Shaurya Malwa

Post-mining his first bitcoins in 2012, there was no looking back for Shaurya Malwa. After graduating in business from the University of Wolverhampton, Shaurya ventured straight into the world of cryptocurrency and blockchain. Using a hard-hitting approach to article writing and crypto-trading, he finds his true self in the world of decentralized ideologies. When not writing, Shaurya builds his culinary skills and trades the big three cryptocurrencies.

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