- Researchers claim 80% of El Salvador’s bitcoin reserves trace back to Bitfinex wallets , raising doubts about government ownership amid unverified private key control.
- El Salvador’s $1.4B IMF deal mandates full disclosure of bitcoin holdings , potentially exposing Bitfinex ties and asset encumbrances tied to Bukele’s administration.
Researchers are questioning whether Bitfinex, a cryptocurrency exchange, controls El Salvador’s publicly listed bitcoin reserves rather than the government. A report by El Diario de Hoy, republished on ElSalvador.com, claims nearly 100% of the 6,114.18 bitcoin attributed to the state originated from Bitfinex wallets.
Analyst Mario Gómez suggests the exchange may be assisting President Nayib Bukele’s administration in presenting donated, loaned, or otherwise encumbered coins as government-owned. Independent verification of these claims remains pending.
According to third-party trackers like Nayib Tracker, El Salvador’s official bitcoin holdings align with the government’s stated balance. However, the origin of these funds is under debate.
Researchers traced deposits to a government-linked wallet and found 80% came directly from Bitfinex, while the remaining 20% passed through the state-backed Chivo Wallet but still originated from Bitfinex. A negligible amount traced back to Binance. The lack of transparency around private key ownership and potential liens on the assets raises further questions.
El Salvador’s ties to Bitfinex and its affiliate Tether are well-documented
The government used Bitfinex for bitcoin purchases under its dollar-cost averaging strategy and initial acquisitions. Tether and Bitfinex hold digital asset licenses in the country, facilitating projects like Bitcoin bonds and the Volcano Energy initiative.
Tether relocated its headquarters to El Salvador, with executives purchasing local real estate. These relationships have fueled speculation about Bitfinex’s role in managing state-held bitcoin.
As part of a $1.4 billion IMF agreement, El Salvador must disclose details about its bitcoin acquisitions. Bukele’s administration has also revoked bitcoin’s legal tender status and halted further purchases.
The IMF deal may eventually clarify the nature of the government’s bitcoin holdings, including funding sources and encumbrances. For now, the extent of Bitfinex’s control remains unresolved, leaving analysts to speculate based on transaction histories and existing partnerships.
The debate underscores broader challenges in tracking cryptocurrency movements tied to state entities. Without verifiable data on private key ownership or contractual terms, El Salvador’s bitcoin reserves remain a contested topic.
