Bitfinex Cryptocurrency Platform
Bitfinex is among the longest and earliest established cryptocurrency trading platforms in the world. Started in 2012, it has grown to become one of the prominent names in this market. It is now available in 3 languages which are the English Language, Chinese and Russian. The company’s headquarters is in Hong Kong where it now serves more than 50 countries across the world.
Services and Cryptocurrencies
Bitfinex is the trading platform used by traders globally where it supports the following cryptocurrencies:
- Bitcoin Cash
- Ethereum and Ethereum Classic
Besides that, its Fiat currencies are US Dollar, Euro Dollar, Great British Pound and Japanese Yen. Owned by iFinex Ic, the company is registered in the British Virgin Islands where it offers services such as margin trading, OTC, margin lending and most notably, digital currency exchange. In late 2017, it was speculated that there was price manipulation of bitcoin on Bitfinex which contributed to almost 50% of the increase of the bitcoin increase in price.
Meanwhile, Bitfinex has been involved in several controversies. This includes 2015 when hackers broke into the exchange’s customer that caused a loss of USD400,00. A year after that, another incident happened when around USD73 million was lost. The company started as a peer-to-peer Bitcoin exchange when it started offering digital asset trading services. Later, more cryptocurrencies were added where it became more popular which incidentally saw more hackers taking note of what they can do in the network. In fact, the 2016 hack has been hailed as one of the largest ever in the Bitcoin exchange platform. In 2017, Wells Fargo announced that it was cutting off its wire transfers that drove Bitfinex to announce that it had delays in processing USD withdrawals.
Bitfinex – 2021 Updates
Throughout the last few years leading to 2021, there have been several incidents that have put Bitfinex in the limelight. Among them include:
The Bitfinex Hack – In an astounding move, some US$7 billion was recently involved in the Bitfinex hack. According to reliable reports, some 21% of the amount has already been moved. The hack took place in 2016 and since then it has shed some negative light on the exchange, some even claiming that it never recovered from the bad publicity.
During the incident, 120,000 bitcoins were stolen from Bitfinex and they now only have 96,000 left in the original wallet. The coins were removed through privacy wallets and the dark web, according to the firm and it took them a few years to remove them as it only happened in the last 12 months or so. This came as recently as April 2021 when some 12,000 bitcoins were withdrawn. At the current rate, that would amount to more than US$700 million.
Hiding losses – In a separate event, Bitfinex, together with another cryptocurrency exchange Tether have been ordered to shut down activities after they both reportedly hid losses amounting to US$850 million. This means that Bitfinex and Tether would no longer be carrying out trading activities in New York, one of the largest markets in the world. They will also be paying penalties amounting to some US$18 million. The New York State Attorney General’s office investigated the 2 firms back in 2017 for activities involving ‘stablecoins’. They have both made false statements to cover up their financial losses after moving funds around.