Bitfinex
Bitfinex is a digital asset trading platform that provides advanced services for cryptocurrency traders and global liquidity providers. Founded in 2012, Bitfinex was one of the early professional platforms catering to the growing interest in cryptocurrency trading. Over the years, the platform has gained extensive experience and established itself as a leading choice for digital asset traders and institutions.
Bitfinex offers a range of advanced trading features, charting tools, peer-to-peer financing, an OTC market, and margin trading for a broad selection of digital assets. The platform’s strategy is centered around delivering exceptional support, innovative tools, and resources for professional traders and liquidity providers globally.
However, the platform has faced challenges. In 2015, it was hacked, resulting in a loss of approximately $400,000. The following year, another major breach occurred, with about $73 million stolen from users’ accounts. These events led to restrictions on the platform’s access to U.S. dollar payments and withdrawals.
Bitfinex has close ties to Tether, a stablecoin that Tether Limited claims is pegged to the U.S. dollar. Since 2018, both Bitfinex and Tether have shared common ownership and management. In 2017, the relationship between the two companies raised concerns among critics.
In February 2021, Bitfinex reached an $18.5 million settlement with the New York Attorney General’s office regarding allegations of false statements about Tether’s backing and the transfer of hundreds of millions of dollars between Bitfinex and Tether to cover up significant losses in 2017 and 2018. As part of the settlement, Bitfinex agreed to maintain its ban on trading with New Yorkers.
By 2021, Bitfinex had fully repaid its remaining loan balance to Tether. According to an unaudited 2019 financial report, Bitfinex posted a gross profit of $418 million in 2018, with net profits of $404 million and dividends of nearly $262 million. The company raised $1 billion in just 10 days. In 2017, Bitfinex reported $333.5 million in gross profits, $326 million in net profits, and $246 million in dividends.
On October 15, 2021, Bitfinex was fined $1.5 million by the Commodity Futures Trading Commission (CFTC) for engaging in illegal, off-exchange retail commodity transactions in digital assets with U.S. residents.
Contact Info
- support@bitfinex.com
- www.bitfinex.com
- Hong Kong
