Bitfinex Holding the Line to Defend Against Rumors

Bitfinex Holding the Line to Defend Against Rumors

Cryptocurrency exchange Bitfinex has been accused of being insolvent in a series of articles on Medium. In Sunday’s blog post, the company denied the rumors by providing counter-arguments.   

It’s All Good

Bitfinex stated that it is not insolvent, and “as one of only a very few exchanges operating since 2013, with a small team and low operating costs,” they do not understand the accusation, which, in their opinion, is unfounded. 

The company claimed that the allegations are "a targeted campaign based on nothing but fiction." Further, they listed cold wallet addresses holding Bitcoin, Ethereum and EOS to reveal the amount of cryptocurrency assets it Bitfinex holds at the moment. 

Based on the addresses, Bitfinex holds at least 148,467 Bitcoin, 1.7 million Ether, and over 35 million EOS. Altogether the assets are worth around $1.5 billion, based on data provided by CoinMarketCap.

Who’s to Judge?

On Saturday, Medium user ProofOfResearch declared that the exchange is not solvent anymore. The prosecutor called for Bitfinex’s customers to withdraw their assets as soon as possible. According to him, Bitfinex censored multiple posts on a sub-reddit in which users attempted to report issues regarding fund withdrawal. 

Bitfinex responded claiming that "both fiat and cryptocurrency withdrawals are functioning as normal."

Questionable Reputation of Bitfinex 

Lately, Bitfinex has been surrounded by controversial rumors. In January, both Bitfinex and Tether were reportedly subpoenaed by the U.S. Commodity Futures Trading Commission.

Later, following a number of complaints about the lack of transparency, Bitfinex published a report – via a law firm, instead of an auditing firm – in which stated that the company had $2.55 billion in U.S. dollar reserves to back $2.54 billion-worth of USDT that were circulating on June 1.

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