Bitfinex has vigorously refuted claims that it and its Tether stablecoin are on the brink of insolvency. Rumors have surrounded the opaque exchange for over a year, but have intensified in the past month. “Bitfinex is not insolvent, and a constant stream of Medium articles claiming otherwise is not going to change this,” asserts a strongly worded denial.
Bitfinex Comes Out With All Guns Blazing
Rumors of Bitfinex and Tether’s potential insolvency have been swirling through the cryptosphere in recent days. Such has been their virality that the normally uncommunicative exchange has taken the step of breaking its silence. In a blog post published today, Bitfinex emphatically refuted all such unfounded claims and took aim at critics who “are quick to scream insolvency, seemingly with little understanding of what this concept means and what they are generally talking about”.
As proof of this, Bitfinex posted the address of its BTC, ETH, and EOS cold wallets. They contain almost $1 billion of bitcoin core, $400 million of ether and $200 million of EOS. Since the bulk of these assets are presumably customer deposits, they do not in fact prove that Bitfinex is solvent. Besides, even the platform’s staunchest critics have not denied that Bitfinex has significant crypto assets under its control. Rather, they have raised concerns over its fiat banking arrangements, and specifically the enduring question of whether the $2.8 billion of tethers in circulation are backed by dollar deposits.