Crypto exchange Bitfinex has issued a statement in which it denies any of the accusations about the company being insolvent. The company did acknowledge some issues with fiat transactions, ‘as they do for most cryptocurrency-related organisations’. Bitfinex states it doesn’t identify itself with statements made by whistleblowers, and it also denies that problems with Noble Bank will impact operations.
On October 6th a whistleblower nicknamed ProofOfResearch wrote an article on Medium about Bitfinex and their alleged money problems. He claims people need to get their money out of Bitfinex as fast as possible. His research was based on the following:
- For weeks customers have had issues receiving their fiat withdrawals from Bitfinex.
- Customer tickets regarding these payment issues are not being resolved, but are simply ignored.
- Threads created on Reddit regarding these payment issues have been deleted by the Bitfinex subreddit moderators.
- Technical issues on Bitfinex in regards to deposits and withdrawals of cryptocurrencies
- Failure of internal support staff to address these issues
Bitfinex representatives on Reddit have pointed towards Crypto Capital Corp for the withdrawal issues. According to the whistleblower, both Crypto Capital Corp and Bitfinex are connected. At the same time Noble Bank has become insolvent. This bank is owned by Brock Pierce, who’s the founder of the stablecoin Tether. Tether is tied into Bitfinex because it’s managed by the same group.
The exact status of Bitfinex stays unclear. The crypto exchange would never confirm issues at their exchange, because when all people remove their money the organization will fall. According to the whistleblower ProofOfResearch issues at Bitfinex started about 4 to 5 weeks ago, which would be in line with the problems at Noble Bank.
According to Bloomberg both Bitfinex and Tether have cut ties with Noble Bank. The Puerto Rican bank is now up for sale. Trading volume on Bitfinex went down 24% after the news about Noble Bank hit the market.