Bitfinex Stops USD Deposits To Their Exchange

Published 5 years ago on October 11, 2018

Bitfinex Stops USD Deposits To Their Exchange

The popular digital currency exchange, Bitfinex has reportedly stopped its USD deposits to their exchange. This news comes after last weeks, several rumours that the exchange was broke which made management forced to step up and deny the rumours that they were not bankrupt. The company has gone under inspection for the widespread use of the USD Tether stablecoin. However, there haven't been any transparent audits which actually prove the stablecoin is backed by the US dollar. This is a serious situation for the market, with over $2.5 billion in the form of USDT. A digital currency news outlet, The Block has revealed that earlier today, the exchange has stopped all deposits of USD. At least, they have stopped them for now as they are expecting the situation to return to normal by next week. The same news outlet also reported that their new partnership with the popular bank HSBC, after reports emerged of their previous banking partner finding it hard to run. On their blog, Bitfinex said this on the matter:

â€œComplications continue to exist for us in the domain of fiat transactions, as they do for most cryptocurrency-related organisations. However, we continue to do our utmost to minimise any waiting times associated with fiat deposits and withdrawals.â€

Their bank account is a private one under the name Global Trading Solutions and so it isnâ€™t clear whether HSBC was aware that the exchange was banking with them. According to The Block who said:

â€œNow it appears that the private account is no longer functional. Bitfinex currently has no active method of deposits as all USD, EUR, JPY and GBP deposits are paused.â€

Now, this is different from what was said by Bitfinex in their blog post explaining why they werenâ€™t bankrupt or going bankrupt. They had said:

â€œVerified Bitfinex users can freely withdraw Euros, Japanese Yen, Pounds Sterling and U.S. Dollars.â€

Twitter users are also reporting the issue, with USD withdrawals currently being temporarily stopped for many. There is speculation that the recent drop in the price of Bitcoin was due to the rumours of the withdrawals being stopped. If you decide to attempt to deposit USD anyway you will be met with this message:

â€œUSD Wire Deposits Temporarily Paused. We expect the situation to normalize within a week. We apologize for the inconveniences.â€

What are your thoughts? Let us know what you think down in the comments below! Reference: AMB Crypto

Robert Johnson

Robert first came across Bitcoin in 2016 during a meetup in Belgium, and has been hooked ever since. With a background in Economics, you can find Robert frequently looking at the Twitter feed of the SEC for any regulatory updates relating to Bitcoin and Crypto in general.