|Type of business||Private|
|Available in||English, Russian, Chinese|
|Area served||52 countries|
|Products||Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Ripple, OmiseGO, Monero, NEO, EOS, IOTA|
|Services||Digital currency exchange|
In May 2015, 1500 bitcoins were stolen during a hack.
In 2016, Bitfinex was the subject of the Bitfinex hack. In it, $72 million in bitcoin was stolen from the company's customer's accounts. Immediately thereafter, bitcoin's trading price plunged by 20%. After learning of the breach, Bitfinex halted all bitcoin withdrawals and trading.
In that hack, the second-biggest breach of a Bitcoin exchange platform, 119,756 units of bitcoin, which was about $72 million at the time, were stolen. Bitfinex first announced the security breach on August 2, 2016. The bitcoin was taken from users' segregated wallets and Bitfinex said it was tracking down the hack. Significant hacker funds transactions were signed off by Bitfinex's security provider, without full security.
Shortly after the hack, Bitfinex created BFX tokens, which were used to represent customers' stolen equity. The BFX tokens represented $1 and were issued to account for the value of customers cryptocurrencies at the time of the hack. In April 2017, Bitfinex announced they had bought back all of the BFX tokens, essentially paying back all of customers lost funds.
Arthur Hayes (co-founder of BitMEX) and others complained about the lack of detail that Bitfinex provided about the hack, saying "There are so many questions about (Bitfinex)... All of this could be easily rectified by just showing all the figures." Der Velde responded that Bitfinex had "been as public and transparent as possible about (the hack) given the ongoing criminal investigations".
In March 2018, British Virgin Islands-based Bitfinex confirmed the exchange’s plans to relocate its business to Zug, Switzerland.
2017 withdrawal and pricingEdit
In April 2017, Bitfinex announced that it was no longer able to let users withdraw their funds in USD, after Wells Fargo cut off its wire transfers. Bitfinex and Tether sued Wells Fargo for the decision but dismissed the case few days later. As a consequence, Bitcoins were traded at a price around 100 USD higher than other exchanges as users started buying bitcoins in order to move them to other exchanges and withdraw their funds there.
Shortly after the Wells Fargo cutoff, Bitfinex stated all international wires had been cut off by its Taiwanese bank. Since then, Bitfinex has moved between a series of banks in other countries, without disclosing to customers where the money is stored.
A spokesperson for Bitfinex and Tether has said that the CEO of both firms is Jan Ludovicus van der Velde. Subpoenas from the U.S. Commodity Futures Trading Commission were sent to Tether on December 6, 2017.
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