Bitfinex to answer insolvency rumors-Bitfinex is among the top three cryptocurrency exchanges in the world. Recently there were rumors around bitfinex that said bitfinex had become insolvent. As a move to answer these rumors and tackle them, bitfinex has provided proof of wallets and has claimed there were no circumstances like the ones which rumors are about.

Company’s Post

The company published a blog post on October 7, in which the company said that it was not insolvent. However, it also provided links to several public wallet addresses as proof. Bitfinex lashed out at the rumors and claimed that the rumors were targeted and false allegations which were purely fictional. The company’s blog further stated:

“Bitfinex is not insolvent, and a constant stream of Medium articles claiming otherwise is not going to change this. As one of only a very few exchanges operating since 2013, with a small team and low operating costs. We do not entirely understand the arguments that purport to show us to be insolvent without providing any explanation about why.”

There was a post in the medium, in which a user warned the users of bitfinex to exit the exchange. The suspended post claimed that the frozen and restricted transactions were the proof that bitfinex was soon going to be insolvent. The post also consisted of links to the grievances made by the users against the frozen and restricted transactions, which the bitfinex is accused of censoring.

As a reply to the post and to defend against the false claims, Bitfinex posted:

Against False Claims

“Both fiat and cryptocurrency withdrawals are functioning as normal. Verified Bitfinex users can freely withdraw Euros, Japanese Yen, Pounds Sterling, and U.S. Dollars. Complications continue to exist for us in the domain of fiat transactions, as they do for most cryptocurrency-related organizations.”

For the users who were still skeptical following the rumors, Bitfinex provided links to bitcoin, ether and eos cold wallet reserves. Bitfinex claimed that these wallets represented just a fraction of the actual holdings that the firm has in cryptocurrencies.

The wallets held approximately $1.5 billion in assets. The majority of this fortune is accrued in the exchange’s bitcoin wallet. Which holds 148,467 BTC worth roughly $989 million at current exchange rates. The second largest holding of the firm is in ether wallet that contains 1,726,496 ETH (~$395 million). And its eos reserves are at 35,374,975 ($209 million).

Bitfinex under observation

Bitfinex to answer insolvency rumors-Bitfinex has been under inspection since last week when there was news about one of the firm’s banking partner is looking for a potential buyer. This is what ProfofResearch claimed to be proof for the firm’s financial troubles.

The source who tipped the news to Bloomberg claimed that the Puerto Rican Noble Bank was no longer profitable. Bitfinex has also severed its relationship with the financial firm, affirming in its blog post that “stories and allegations currently circulating mentioning an entity called Noble Bank have no impact on its operations, survivability, or solvency.”

Popular stablecoin Tether also terminated its relationship with the bank. Operated by a like CEO in Jan Ludovicus van der Velde, Tether’s and Bitfinex’s operations, purportedly, are intrinsically linked. The two companies have been long entangled in a conspiracy. Which charges Tether is not fully backed by U.S. dollar reserves.

There was a report that pointed to Tether’s artificially inflating bitcoin prices during 2017 that led to doubts around the firm. Tether has produced an in-house attestation overseen by the Freeh Sporkin & Sullivan law firm to clear its name. However, this was is not an official audit, and Tether states it is impossible for a company in its position to attain.

 

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