Report: Bitfinex Shifts Its Banking Business to Hong Kong-Based Bank of Communications

Cryptocurrency trading platform Bitfinex has reportedly shifted its banking business to the Hong Kong-based Bank of Communications, the Block reported Oct. 16.

A source familiar with the matter reportedly said that Bitfinex appears to be banking with the Bank of Communications through the private account "Prosperity Revenue Merchandising Limited." According to the Block, Bank of Communications - which is partly owned by HSBC - has been using U.S.-based Citibank as the intermediary bank for U.S. dollar wire transfers to Bitfinex.

The Block speculates that HSBC - with whom Bitfinex previously conducted its banking business - was unaware it was providing services for Bitfinex, and subsequently closed the previous account.

A similar incident occurred in 2017, when Wells Fargo allegedly refused to continue operating as a correspondent bank for Bitfinex.

As reported on Oct. 8, Bitfinex was at the center of rumors claiming the exchange was insolvent and/or facing banking issues.

The rumors were caused by last week's reports that the exchange's banking partner, Puerto Rico's Noble Bank International, is seeking a buyer and had lost Bitfinex as a client.

Today's report follows news that Bitfinex temporarily suspended all fiat wire deposits for the euro, U.S. dollar, Japanese yen and U.K. pound sterling on Oct. 11, without specifying the reason.

Deposit requests will be reviewed within 48 hours, while the deposit itself, as Bitfinex states, will be processed "Within 6-10 business days."

Founded in 2012 in Hong Kong, Bitfinex is currently the 4th largest crypto exchange globally in terms of trade volume, with $321 million in trades over the last 24 hours at press time.

At press time, Bitfinex could not be reached for comment regarding the reported banking developments.