Bitfinex Exchange Suspends Deposits And Withdrawals (Temporarily)

The cryptocurrency exchange Bitfinex is in the coming altcoin news for temporarily shutting down its services, as a tweet published on May 31 showed. The tweet reveals that a change is what caused the Bitfinex exchange to temporarily pause deposits and withdrawals.

Due to the outage of one of our network providers we temporarily paused deposits and withdrawals. Funds are safe in cold storage. Situation should be restored ASAP (ETA 3/4h). Apologies for the inconvenience.

— Bitfinex (@bitfinex) May 31, 2019

The official information in the tweet says that the suspension was “due to the outrage of one of [their] network providers.” As the company further noted, “the funds are safe in cold storage. Situation should be restored ASAP (ETA 3/4h). Apologies for the inconvenience.”

The CTO of Bitfinex exchange, Paolo Ardoino, has recently posted links to the exchange’s hot wallets in order to insure the community that there are no outgoing tokens and that the user funds on the exchange are completely secure.

As we previously reported in our latest cryptocurrency news, Bitfinex and its affiliated stablecoin Tether (USDT) were viral at the end of April, when the New York Attorney General (NYAG) Letitia James accused the two companies of covering more than $850 million in losses that could have affected New York investors.

The news were then reported by many best cryptocurrency news sites and spread like wildfire.

At the time, the Bitfinex exchange never revealed its loss to investors. The executives of the exchange as well as Tether engaged in a series of conflicting corporate transactions where Bitfinex received access to around $900 million of Tether’s cash reserves. As the reports show, the exchange took no less than $700 million from Tether’s reserves and used these funds to hide the losses and the inability to handle the clients’ withdrawals.

In the other altcoin news, the Bitfinex exchange decided to list the new exchange token named LEO a couple of weeks ago, after purportedly raising more than $1 billion from its initial coin offering (ICO).

Headquartered in Hong Kong, the Bitfinex exchange is a cryptocurrency exchange that is owned and operated by iFinex Inc. and is officially registered in the British Virgin Islands. The exchange is known for losing its customers’ money in several incidents – as well as the fact that they are unable to secure normal banking relationships.