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Monday, October 8, 2018

Bitfinex goes to war with their critics, claiming they DO have the funds to back up their holdings - but the critics aren't satisfied with their story...

Back in November of last year I published an article titled 'Did Tether FAKE a hack to cover up crimes? We dive into the conspiracy theory.' (Link)

It outlined the theory that Bitfinex, through their stablecoin "Tether" (USDT) had been 'printing money' and the claims some were making that they faked being hacked - as a creative way to balance their books.

Things reached a new level of anger, when a couple days ago an anonymous blog post on Medium claimed to have the inside information - that Bitfinex was in fact committing fraud.

Now - that Medium account is suspended, the post deleted - and Bitfinex is fighting back. Sharing this post to their blog...
"Bitfinex is not insolvent, and a constant stream of Medium articles claiming otherwise is not going to change this. As one of only a very few exchanges operating since 2013, with a small team and low operating costs, we do not entirely understand the arguments that purport to show us to be insolvent without providing any explanation about why." says the company.

They then went as far as sharing their wallet addresses for everyone to audit:


Adding "The wallets represent a small fraction of Bitfinex cryptocurrency holdings and do not take into account fiat holdings of any kind."

This is just the latest move from Bitfinex where they claim they're providing transparency - the critics however want more, and are wondering why they're avoiding conducting a Tether and Bitfinex full-scale audit by an independent outside firm.

"Yes, we’re going to trust someone that flees friendly jurisdictions like Japan that simply want transparency, that they will be transparent." says their most vocal critic, who goes by "Bitfinexe'd" on Twitter.

Until that audit happens, they say they'll remained convinced Bitfinex has something to hide.
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Author: Ross Davis
E-Mail: Ross@GlobalCryptoPress.com Twitter:@RossFM
San Francisco News Desk