Bitfinex Stops All Fiat Deposits While Fighting Insolvency Rumors

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Just a few days after rumors started circulating that Bitfinex, one of the largest cryptocurrency exchanges in the market, was experiencing insolvency issues, the crypto exchange has decided to temporarily suspend all fiat wire deposits for Euro, USD, Japanese Yen and Pound Sterling. Bitfinex has not confirmed the situation, although numerous users have started reporting this issue, claiming the exchange informed that they would resume its operations within a week or so.

Although there is no reason behind the extreme measure, rumors about insolvency were so loud that the exchange published a medium post facing the rumors and reassuring its customers that they were not insolvent at all. The response came as a statement to reports surfacing that a Puerto Rico bank, Noble Bank International, was seeking a buyer due to losing both Bitfinex and Tether as clients which lead to believe the exchange was in financial distress. Although, Bitfinex was quick and tried to put down the fire by claiming that this situation had no financial impact on their current operations, survivability or solvency, users were left uncertain about the exchange’s financial situation. 

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In the medium post, Bitfinex even provided 3 cold wallets addresses, claiming that they were part of just a small fraction of the cryptocurrency exchange holdings, with 141,467.25 Bitcoin (BTC), 1,636,573.15 Ethereum (ETH) and 33,293,534.95 EOS (EOS), all valued at almost $1.4 billion USD at present.  

Additionally, in the post Bitfinex pointed out that:

Complications continue to exist for us in the domain of fiat transactions, as they do for most cryptocurrency-related organizations.

According to CoinMarketCap, Bitfinext is placed in the 4th position globally with a trading volume of more than $700m within the last 24 hours. This situation has caused a lot of crypto community members to support the previous claim that the cryptocurrency exchange is indeed going through financial issues. 

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