Bitfinex
Bitfinex is a leading digital asset trading platform that provides advanced services for cryptocurrency traders and global liquidity providers. Established in 2012, Bitfinex was among the first professional platforms to address the growing demand for cryptocurrency trading. Over the years, the platform has solidified its position as a trusted choice for institutional traders and individual investors alike.
Bitfinex offers a wide range of features, including advanced trading tools, peer-to-peer financing, an over-the-counter (OTC) market, and margin trading for various digital assets. The platform is designed to support professional traders and liquidity providers by delivering cutting-edge tools, strong customer support, and ongoing innovation.
Despite its prominence, Bitfinex has faced significant challenges. In 2015, the exchange experienced a security breach that resulted in customer losses of approximately $400,000. A more significant hack in 2016 saw $73 million stolen from user accounts. Additionally, Bitfinex’s access to U.S. dollar payment and withdrawal services has been restricted.
Bitfinex is closely associated with Tether, a stablecoin that Tether Limited initially claimed was fully backed by U.S. dollars. The two entities share common shareholders and management. In 2017, concerns were raised about the financial relationship between Bitfinex and Tether. These concerns culminated in a February 2021 settlement with the New York Attorney General’s Office. Bitfinex agreed to pay $18.5 million to resolve allegations that its parent company, iFinex, made false statements regarding Tether’s backing and transferred funds between the companies to conceal substantial losses from 2017 and 2018. As part of the settlement, Bitfinex is prohibited from conducting business with New Yorkers.
Bitfinex repaid its remaining loan balance to Tether in 2021, marking a significant step toward addressing past controversies. Financial records from 2018 show gross profits of $418 million, expenses of $14 million, and net profits of $404 million, with $262 million distributed as dividends. In 2017, the platform reported $333.5 million in gross profits, $6.8 million in expenses, $326 million in net profits, and $246 million in dividends. Additionally, Bitfinex raised $1 billion in funding within just 10 days.
In October 2021, Bitfinex agreed to pay a $1.5 million fine to the Commodity Futures Trading Commission (CFTC) for engaging in illegal, off-exchange retail commodity transactions involving digital assets with U.S. customers.
Contact Info
- support@bitfinex.com
- www.bitfinex.com
- Hong Kong
