Did cryptocurrency exchange giant Bitfinex play a role in last night’s bitcoin sell-off?
As first reported by The Block, the British Virgin Islands-based but Hong Kong-operated exchange has “temporarily paused” EUR, USD, JPY, and GBP wire deposits, although screenshots from customer accounts circulated on social media suggest that the situation should “normalize within a week.”
Reports had emerged last week that Bitfinex, long suspected to be holding funds at the now-faltering Noble Bank in Puerto Rico, had found a permanent banking partner in HSBC.
Per The Block, Bitfinex was actually banking at Bitfinex through a private account via Global Trading Solutions. Consequently, it’s possible that HSBC was not aware that it was holding Bitfinex assets, and — following the significant press coverage — has suspended or closed that account.
The cryptocurrency market has faced a significant sell-off on Thursday, raising questions about whether there is a connection between the decline and concerns over Bitfinex’s oft-opaque operations.
Bitfinex, as CLC reported, published a blog post earlier this week denying allegations that it is insolvent, though many critics remain unconvinced, particularly given the exchange’s close association with the controversial tether (USDT) cryptocurrency.
Developing…Check back for updates
Featured Image from Shutterstock
Follow us on Telegram or subscribe to our newsletter here.
• Join CLC’s crypto community for $9.99 per month, click here.
• Want exclusive analysis and crypto insights from CryptoLiveClub? Click here.
• Open Positions at CLC: Full Time and Part Time Journalists Wanted.
The land registry manager of New South Wales in Australia has partnered with a blockchain technology firm with a view…
Cryptocurrency exchange Coinbase has opened a new office in Dublin to mark its latest expansion into Ireland as a marked…
Months after announcing the launch of Uganda’s first-ever fiat-crypto exchange, Binance has made another step towards facilitating cryptocurrency trading in…
The crypto market has stabilized after a wild 24-hour period triggered by the sudden increase in the price of Bitcoin.…
San Francisco based DocuSign has announced the integration of the Ethereum blockchain into its electronic signature and transaction management service.…
The amount of Venezuelan bolivars being spent to purchase bitcoin has risen to record levels as the South American country…