It has been a while since we last heard from the infamous Bitfinex’ed account. This particular user has posted some interesting theories regarding this exchange and the Tether project. His latest thoughts come in the form of how Bitfinex fails to perform the expected audits. It is evident this topic is very sensitive, even though there may be some truth to it as well. After all, no one wants to deal with a potentially insolvent exchange. For now, Bitfinex seems to be doing just fine, but there are some worrisome signs.
Any cryptocurrency exchange will benefit from regular independent audits. Especially when it comes to customer holdings, a proper audit can go a long way. It introduces more transparency and a clear balance sheet for everyone to look at. In the case of Bitfinex, such an audit was scheduled to take place at some point over the past 8 months. To date, the company has not taken any steps to deliver on that promise. It raises a lot of questions, for obvious reasons.
Still no Bitfinex Audit Despite Earlier Promises
More specifically, Bitfinex announced their audit plans in May of 2017. At that time, the company was looking for a reputable auditor. It seems they have been rather unsuccessful in this regard. Another option is how they hope everyone has forgotten about this ordeal. Rest assured the cryptocurrency community never forgets anything. Especially when it pertains to exchanges, potential insolvency, or dubious projects.
There are many possible reasons why this audit hasn’t happened. The exact reasoning behind this lack of a decision remains shrouded in mystery. Speculation runs wild, as Bitfinex’ed sees malicious intent regarding this development. Friedman LLP will not perform the audit for some unknown reason. In fact, the company no longer has any ties to Bitfinex, by the look of things. That in itself is pretty intriguing, although it only raises even more questions.
When auditors decide to move away from Bitfinex, it is evident something up. Whether or not this means anything nefarious takes place, will always be subject to debate. It is evident this particular exchange needs an independent audit if they want to retain their customers. People will not stand up for this lack of transparency much longer, At the same time, the company is not doing anything illicit until proven otherwise. A very interesting situation, albeit one that will not be resolved anytime soon.
Header image courtesy of Shutterstock
