Marco Verch / Flickr
Voyager

Hong Kong-based crypto exchange Bitfinex began facing allegations of insolvency following last week’s news that Noble Bank International, the Puerto Rican financial services firm, lost the exchange as a client.

More questions were then raised after crypto analyst Larry Cermak discovered that the exchange is now banking with HSBC through a private account of Global Trading Solutions.

“Bitfinex is now banking with HSBC through a private account of Global Trading Solutions. Very good fit if you ask me. It’s also worth mentioning that all EUR, JPY and GBP deposits are paused but Bitfinex ‘expects the situation to normalize within a week,'” Cermak said.

However, Bitinex recently came out with a rebuttal to the various allegations and questions surrounding the health of the exchange’s operations and banking status.

Bitfinex first states that it is “not insolvent, and a constant stream of Medium articles claiming otherwise is not going to change this.” To drive home this point, the exchange includes cold wallet addresses for Bitcoin, Ethereum and EOS showing $980 million, $395 million and $204 million, respectively.

In responding to Cermak’s statement regarding fiat deposit status, Bitfinex states, “Verified Bitfinex users can freely withdraw Euros, Japanese Yen, Pounds Sterling and U.S. Dollars. Complications continue to exist for us in the domain of fiat transactions, as they do for most cryptocurrency-related organisations.”

🚀  Overstock.com Makes a Multi-Million Dollar Bet on a Decentralized Social Network

Finally, Bitfinex emphasizes that the current status of Noble Bank has no barring on the exchange’s operations, survivability or solvency.

More: A Response To Recent Online Rumours
Related: Puerto Rico’s Noble Bank Seeks Sale Amid Crypto Slide
Photo: Marco Verch / Flickr

Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.

Voyager

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.