The cryptocurrency exchange Bitfinex has reportedly shifted its banking business and transferred to a Bank of Communications (Hong Kong) account. It relied on Citibank as a transit bank to wire the US dollar into the account.
Last week, it was reported that Bitfinex had financial problems and had abandoned their Puerto Rico Noble bank account. The HSBC private account that it had been using was also canceled. At the time, Bitfinex had issued an announcement denying the company’s insolvency. Earlier this year, Wells Fargo refused to continue as a proxy bank for Bitfinex which led to a lawsuit which had since been withdrawn. Bitfinex had filed a lawsuit alleging Wells Fargo prohibited four Taiwan-based banks that do business with Bitfinex from completing outbound wire transfers.
US: Coinbase, Kraken, Bitstamp
Japan: BitFlyer, SBI
Korea: Upbit, Bithumb, Korbit
How is it that all of these crypto exchanges never had any issue with banks and only Bitfinex is moving bank to bank?
Lack of transparency & communication is astonishinghttps://t.co/QBKmdsoAnl
— Joseph Young (@iamjosephyoung) October 17, 2018
Financial technology analyst Joseph Young said that large cryptocurrency exchanges such as Coinbase, Bitflyer, and Upbit have been doing business with banks. However, only Bitfinex has frequent incidents and assets needed to be moved. The incident reflects the lack of external communication. Questioning its financial transparency.
Earlier, Bitfinex suspended its deposit service, which is expected to resume next week. It also announced the launch of a new deposit system that allows customers who are eligible for KYC (Know Your Customer) to deposit Euro, US Dollar, Japanese Yen, and the British Pound.