Bifinex, the popular crypto exchange, is based in Hong Kong and was launched in 2013. The exchange was accused of being insolvent in a Medium post on Oct 6. According to the author of the posts, many customers have claimed that “they have not received any of their fiat withdrawals from Bitfinex” for many weeks.
With customers tickets left unanswered by the support team, and Reddit threads for customers of Bifinex deleted by the Bitfinex subreddit moderators, the author concluded that the crypto exchange is no longer solvent and advised users to remove their money from the platform.
However, in less than 24 hours after the accusation was made, Bifinex has given a responded to the allegation in order to calm the FUD caused by the posts on Medium.
“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,” the exchange said in a blog post.
Bitfinex added three cold wallets (BTC, ETH, and EOS) to the blog post as a proof to show the “small fraction” of crypto assets held by Bitfinex, while claiming it has no “FIAT holdings of any kind.”
According to the exchange, only verified users of Bitfinex are able to withdrawal their fiat without glitches. However, just like most crypto-related companies, Bitfinex does have some challenges and delays with fiat transactions and have promised: “they will continue to do everything possible to improve the transactions speed of fiat deposits and withdrawals.”
Whether or not Bitfinex is guilty of the accusations, one thing is almost certain; the company does not want any that would destroy its name and reputation among the crypto community and become an MT Gox 2 story.