ETHERLive
ETHERLive delivers real-time price and volume data across 16+ exchanges to users in a clear and easy-to-understand package. Users can get up-to-the-second updates for each exchange/currency pair, as well as aggregated market averages for each exchange, currency, and the market as a whole. It also provides a global converted average of all the currency pairs monitored by ETHNews, converted to USD.

---

24hr ---
--%
Tuesday Dec 11th 2018
RESOURCES

The Basics

Learn the basics of Ethereum and various cryptocurrency technologies

Learn More

What is Ethereum?

Understand the underlying principles of the Ethereum Platform

Learn More

The Blockchain

Discover the revolutionizing technology known as the blockchain

Learn More
SUBMIT

Press Release

Submit a press release for consideration on ETHNews

Submit Press

Story / Dapp

Submit a story or DAPP to be considered for publication on ETHNews.

Submit Story

Explanation

Submit "Ethereum Explainer" content for consideration to be featured on ETHNews

Submit Topic
ETHNews Logo
---
--%
Home
News
Etherlive
Ether Price Analysis
Resources
Contact Us

Bitfinex Responds To Insolvency Rumors

By

Tim

Prentiss

WriterETHNews.com

After dissolving its relationship with Noble Bank, rumors swirled about Bitfinex’s imminent implosion. The exchange has now responded to the rumors.

Last week, rumors about the possible insolvency of exchange Bitfinex quickly followed reports that Noble Bank International, the Puerto Rican institution that counted Bitfinex and Tether among its clients, was looking for a buyer. The Bloomberg article that first reported the Noble story cited an unnamed "person with direct knowledge of the situation" in support of the claims. Noble declined to comment for the article and has apparently still made no announcement about seeking a buyer.

The rumors gained another wrinkle when, on October 3, Bitfinex announced it would be shutting down for routine maintenance the following day. 

The worst fears were never realized. Instead of shutting down and never reopening (as happened with MtGox), on the following day, Bitfinex announced via Twitter that the upgrade was successfully completed: 

On Sunday, the company took to its official blog in an attempt to put the rumors to rest. According to the sharply worded post, "Bitfinex is not insolvent, and a constant stream of Medium articles claiming otherwise is not going to change this."

However, fittingly for the exchange, which has a tendency to avoid transparency, the post sidesteps one of the main questions at issue: Did Bitfinex lose its relationship with its bank, again? Instead the post states: "Stories and allegations currently circulating mentioning an entity called Noble Bank have no impact on our operations, survivability, or solvency."

Though the phrasing may imply Bitfinex has little familiarity with Noble, the exchange has had a relationship with the bank since sometime in 2017, though according to a Bloomberg article from May, "Noble doesn't actually hold the money ... Instead, it uses Bank of New York Mellon Corp. as its custodian..."

The post makes no mention of any bank with which Bitfinex does have a relationship, though it allows that "complications continue to exist for us in the domain of fiat transactions, as they do for most cryptocurrency-related organisations."

So, possibly the exchange is again having issues with its bank. According to reporting from The Block, it is now doing business with HSBC.

Tim Prentiss

Tim Prentiss has a master’s degree in journalism from the University of Nevada, Reno. He lives in Reno with his daughter. In his spare time he writes songs and disassembles perfectly good electronic devices.

ETHNews is committed to its Editorial Policy

Like what you read? Follow us on Twitter @ETHNews_ to receive the latest Bitfinex, Noble Bank or other Ethereum wallets and exchanges news.