Rumours Float About Bitfinex’s Insolvency, Firm Suspends Fiat Deposits.

Bitfinex is a cryptocurrency trading platform, which is registered in the British Virgin Islands and has their headquarters in Hong Kong. It is operated by iFinex Inc. Bitfinex is currently the 4th largest exchange globally as per daily traded volume.

As per reports on 8th October,  rumours had been making the rounds for quite some time now, about their insolvency and their banking issues. In the face of such an atmosphere, according to several reports of today, October 11, Bitfinex has temporarily suspended all fiat wire deposits for USD, Euro, the Sterling Pound and Japanese Yen.

Bitfinex has issued a statement recently, which said that “complications continue to exist in the domain of fiat transactions,” but tried to assure its users that these problems were ones, which were faced by most crypto related organizations.
They are however expected to resume work within a week.

These statements were released after Puerto Rico’s Noble Bank reported that they had lost both Bitfinex and an affiliated firm, Tether as clients. Some people had in response to this speculated that Bitfines had now shifted their banking operations to HSBC, via an account with the registration name of “Global Trading Solutions.”

BItfinex, however, had not responded to these claims and speculation but elaborated that all such actions will not have any impact the Exchange’s operations, survivability or solvency.

Bitfinex’s troubles began in 2015 when some customers were hacked incurring a loss of about 400,000 USD, and then in 2016, when 73 million USD was stolen from their customer’s accounts. Again, in 2017, U.S. Wells Fargo and Co.allegedly refused to function as a correspondent bank, which led the bank to file a lawsuit.