In response to the recent rumors swarming throughout the crypto community, Bitfinex has just published a blog post clearly stating that the exchange is far away from being insolvent. The blog post also claimed that fiat and crypto withdrawals are fully operational, despite hundreds of users’ complaints that have been all over the internet for weeks.

How Did All the Bitfinex Issues Start?

Since the beginning of September, it seems that Bitfinex’s users have been encountering significant withdrawal issues. Many users have been complaining on Bitfinex’s subreddit about not being able to process their withdrawals, yet the subreddit’s moderators have been deleting these complaint threads on a regular basis as reported by one of the exchange’s users via an article published on Medium.

The exchange’s customers have been also facing connection issues when trying to access the exchange’s platform during the past few weeks. Moreover, the exchange’s customer support staff failed to answer many of the opened tickets ever since the issues began to unfold early in September.

As the issues continued to escalate, rumors circulated that Bitfinex has technically become insolvent, which can have devastating implications on the cryptocurrency economy as a whole, due to the fact that the exchange’s collapse will trigger a logarithmic rise in Tether premiums on all cryptocurrency exchanges relying on the USDT peg throughout crypto/fiat trading operations.

Tether represents around 20% of the overall trading volume of the market, according to data from Coinmarketcap, at the time of writing of this article. As such, Bitfinex collapse will definitely knock out Tether which will ignite significant chaos all over the cryptoverse. The list of affected exchanges will include some of the industry’s top platforms including Kraken, Binance, Poloniex, OKex, ShapeShifter, Huobi, and many more.

Bitfinex Trying to Silence the Rumors:

In light of all the issues and the rumors that claimed insolvency of the exchange, Bitfinex published a blog post earlier today, noting a few important points:

  1. Bitfinex is by no means insolvent. The blog post included the exchange’s Bitcoin, Ethereum, and EOS cold wallet addresses. The addresses included 148,467 BTC,  1,751,273 ETH, and 35,374,965 EOS, which totaled around $2 billion. The post reported that these addresses only represented a small percentage of the exchange’s crypto assets, which means that Bitfinex is very far from being insolvent.
  2. All fiat and crypto withdrawals are working normally. The post claimed that all verified users on the exchange can freely withdraw USD, Euro, JPY, and GBP.
  3. Allegations and rumors reporting an entity known as Noble Bank have no effect whatsoever on Bitfinex’s operations, solvency, or survivability.

So, do you think that Bitfinex is insolvent? Or, will the exchange be able to solve all of its current issues? Let us know in the comments below.

Images courtesy of Pixabay and ShutterStock

Tags: , ,

Leave a Reply

We use cookies to give you the best online experience. By agreeing you accept the use of cookies in accordance with our cookie policy.