Hong Kong-based crypto exchange Bitfinex has hit back against claims it is insolvent and disclosed wallet addresses appearing to show it holds over $1.5 billion in crypto assets.
The company, which shares management with Tether, the venture behind the U.S dollar-pegged crypto USDT, stated in a blog post on Sunday that it is not insolvent, and "a constant stream of Medium articles claiming otherwise is not going to change this."
Bitfinex called out such allegations as "a targeted campaign based on nothing but fiction."
Based on the provided addresses, Bitfinex holds at least 148,467 bitcoin, 1.7 million ether, and over 35 million EOS. These cryptocurrencies are worth around $1.5 billion, based on data from CoinDesk's price index and CoinMarketCap.
Bitfinex's rebuttal follows a recent article on Medium published on Saturday that claimed the exchange is no longer solvent and urged users to withdraw their assets.
The author, who goes by the title "ProofofResearch" alleged that Bitfinex made "a concerted effort" to censor a number of posts on a sub-reddit that it moderates in which users reported issues with fund withdrawals for at least a month.
"Verified Bitfinex users can freely withdraw Euros, Japanese Yen, Pounds Sterling and U.S. Dollars. Complications continue to exist for us in the domain of fiat transactions, as they do for most cryptocurrency-related organizations."
The Medium article also referred to a Bloomberg report last Tuesday as supporting evidence that the Puerto Rican Noble Bank is now mulling a sale and has stopped offering its banking services to both Bitfinex and Tether.
The news comes as the latest controversy surrounding Bitfinex as one of the longest-running crypto exchanges.
In January, both Bitfinex and Tether were reportedly subpoenaed by the U.S. Commodity Futures Trading Commission.
Crypto Exchange Bitfinex Denies Accusations of Insolvency
Published on Oct 8, 2018
by Coindesk | Published on Coinage
Coinage
Mentioned in this article
Recent News
View All
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.