CCBeast Special

What happened with USD deposits and withdrawals on Bitfinex?
Editorial Team

Bitfinex has reportedly halted its USD deposits to their exchange. The news came after last week’s rumors that the exchange was broke which urged management step up and deny them.

The popular digital currency exchange has gone under inspection for the widespread use of the USD Tether stable coin.

Nevertheless, no transparent audit actually proved that the stable coin is backed by the US dollar, making the situation with over $2.5 billion in the form of USDT market very seriously.

A digital currency news outlet, The Block has revealed that earlier today, the exchange has stopped all deposits of USD. At least, they have stopped them for now as they are expecting the situation to return to normal by next week.

The Block also reported that their new partnership with the popular bank HSBC, after reports emerged of their previous banking partner finding it hard to run.

On their blog, Bitfinex said this on the matter:

“Complications continue to exist for us in the domain of fiat transactions, as they do for most cryptocurrency-related organizations. However, we continue to do our utmost to minimize any waiting times associated with fiat deposits and withdrawals.”

Their bank account is a private one under the name Global Trading Solutions and so it isn’t clear whether HSBC was aware that the exchange was banking with them. According to The Block who said:

“Now it appears that the private account is no longer functional. Bitfinex currently has no active method of deposits as all USD, EUR, JPY, and GBP deposits are paused.”

Bitfinex in their blog post explained why they were not bankrupt or going bankrupt:

“Verified Bitfinex users can freely withdraw Euros, Japanese Yen, Pounds Sterling, and U.S. Dollars.”

The temporary stop of USD withdrawals was commented by many Twitter users. There is speculation that the recent drop in the price of Bitcoin was due to the rumors of the withdrawals being stopped.

If you decide to attempt to deposit USD anyway you will be met with this message:

“USD Wire Deposits Temporarily Paused. We expect the situation to normalize within a week. We apologize for the inconveniences.”