- The Exchange would have shifted to Hong Kong’s Bank of Communications.
- Bitfinex Exchange is fighting rumors it was insolvent and has problems banking partners.
- Bitfinex has announced an improved and increasingly fiat depositing system.
Bitfinex Exchange suspended all fiat deposits last week after HSBC reportedly closed the private account the exchange was using. Sources familiar with the details now claim the Exchange would have shifted to Hong Kong’s Bank of Communications.
Victim of the Current Circumstances
A report appearing on The Block on October 16, 2018, has claimed the beleaguered Bitfinex exchange has shifted its banking business to Bank of Communication, using a private account called Prosperity Revenue Merchandise Limited.
The Block explained that the Bank of Communication is a subsidiary of HSBC and uses the U.S. Based Citibank as an intermediary bank to facilitate dollar wire transfers to Bitfinex. Speculation was rife last week that HSBC closed Bitfinex’ accounts since it was unaware the exchange was secretly banking with them using a third party account.
The prevailing circumstances seem to mirror the 2017 arrangement when Wells Fargo played the role of intermediary for Bitfinex’ Taiwanese banks; Wells Fargo pulled out of the arrangement by refusing to wire transfers in U.S. Dollars and the exchange has had a hard time ever since identifying a reliable banking partner.
Bitfinex Exchange has been at the center of rumors that claimed it was insolvent and had problems with their banking partners. It is believed the rumors resulted from last week’s news that Bitfinex’ banker Noble Bank of Puerto Rico was looking for a buyer and the exchange was no longer its client. Bitfinex was forced to subsequently give a statement denying those rumors.
As we reported last week, Bitfinex temporarily suspended all fiat deposits including the Euro, US Dollar, UK pound and Japanese Yen, without giving specific details. The exchange, however, stated that normalcy was “expected to resume within a week.”
Yesterday, Tuesday, October 16, 2018, Bitfinex announced beginning an improved and increasingly resilient fiat depositing system for sending fiat currencies. The company said they expected the new to become know-your-customer (KYC) compliant and enable customers from across the world to continue conducting business using the four suspended fiat currencies.
No Official Word Yet
According to the new system, it will review deposit requests within 48 hours while the deposit itself will take 6-10 days. The company added:
“We believe this system to be significantly more durable in the face of sustained attacks by our competition and their supporters. Ongoing campaigns against us will only result in our company becoming stronger and better.”
Bitfinex is the 4th largest cryptocurrency exchange globally in terms of trade volumes; the exchange introduced fiat operations in 25 currencies to enable traders to enter the digital asset space. The company is yet to confirm or deny the latest developments.