Bitfinex Suspends All Deposits as Bitcoin Tanks

Bitfinex, One of the prominent exchanges has suspended all Fiat deposits. The exchange has also stated that it “expects the situation to normalize within a week”.

The Block first reported that the exchange has halted all USD, EUR, JPY, and GBP wire deposits, this comes after the same publication had previously reported that Bitfinex was banking with the HSBC bank through a private account of Global Trading Solutions. But it was unclear whether the bank was aware that it was Bitfinex, so it is possible that they have cut off ties with the exchange after becoming aware of the firm.

CryptoSqueeze Tweeted:

Bitfinex’s Insolvency

Recently Blockmanity had reported about Bitfinex responding to allegations on its insolvency. These allegations have not been new to Bitfinex, but recently many users started to report complaints on withdrawal issues and were also being censored on the Bitfinex subreddit which escalated to rumors on the exchange’s insolvency.

The Puerto-Rico based exchange then denied all these allegations in a Medium post. However, the exchange is yet to go through an audit to prove the 1:1 peg of Tether with the USD.

Bitfinex’ed, an anonymous Twitter account who previously has made several allegations against Bitfinex urged the users to withdraw their funds and transfer it elsewhere.

Bitcoin Tanks

It is interesting that all this confusion is happening amidst a Bitcoin sell-off. It dropped more than 5% today in less than two hours after staying quite stable for two weeks straight.

The users of Bitfinex, however, haven’t panicked, the price has managed to stay above $6300 which is relatively higher compared to other exchanges like Coinbase, Gemini and Bitstamp where the price has dropped below $6200.

The users, however, seem to have started selling their Tether holdings. Other stable coins like Paxos and TrueUSD are selling at a premium against Tether.

Frank Chapparo Tweeted:

We will be updating the article if any new developments happen. Stay Tuned.

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