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Bitfinex Responds to Insolvency Rumors, Claims Both Fiat and Crypto Withdrawals Working

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KYRENIA, CYPRUS - OCTOBER 3, 2018 Tether cryptocurrency website displayed on the smartphone screen with blurred Bitfinex logo on background. Source: shutterstock.com

Cryptocurrency exchange Bitfinex was recently at the center of an alleged huge insolvency controversy. The FUD around the exchange’s insolvency gained strong press over the weekend, leading Bitfinex to issue a statement on Sunday, Oct. 7, claiming that it is still solvent.

People Anticipate Crypto Industry’s Collapse: Bitfinex

The exchange started its clarification statement, saying that the crypto industry and the exchange have faced many ups and downs in the past. However, some “investigators” are anticipating the collapse of the industry, who quickly scream insolvency rumors.

It went on to write:

“Bitfinex is not insolvent, and a constant stream of Medium articles claiming otherwise is not going to change this.”

The exchange also suggests that it does not “entirely understand” the arguments put forward by rumormongers about insolvency. Bitfinex then went on to provide details of a few wallets containing its crypto holdings.

It also said that the articles about the exchange’s financial health are “indicative of a targeted campaign based on nothing but fiction.” It also suggested that both crypto and fiat withdrawals are functioning normally on the exchange. It accepted that fiat transactions have complications for the exchange, just like its peers, and it is trying to make the fiat experience smoother for users. It also denied that Noble Bank has an impact on its solvency or operations.

How Did the Problems Begin?

The issue started when a Medium user called “PointOfResearch” published a detailed article on how Bitfinex could be on the brink of collapse and become the second Mt. Gox. The article was inspired by another story that claimed that Tether’s bank, Noble Bank, a small start-up in Puerto Rico, is “desperate” for cash and looking for funding.

The story further connects Tether, Bitfinex and Noble Bank, claiming that the Puerto Rican entity’s financial troubles will eventually haunt the crypto exchange. In a subsequent post, the user claimed that Bitfinex is no longer solvent, adding that withdrawals and deposits are facing issues and users have not received their deposits for weeks on end. Additionally, PointOfResearch suggests that moderators of the Bitfinex subreddit have been removing posts complaining about withdrawal issues.

Bitfinex Responds to Insolvency Rumors, Claims Both Fiat and Crypto Withdrawals Working was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.