Bitfinex

Bitfinex is a digital asset trading platform offering state-of-the-art services for digital currency traders and global liquidity providers.

Founded in 2012, Bitfinex was one of the first professional platforms set up to accomodate for the booming interest in cryptocurrency trading. Since then, our team has gained invaluable experience whilst cementing our spot as the go-to platform for digital asset traders and institutions.

In addition to a suite of advanced trading features and charting tools, Bitfinex provides access to peer-to-peer financing, an OTC market and margin trading for a wide selection of digital assets. Bitfinex’s strategy focuses on providing unparalleled support, tools, and innovation for professional traders and liquidity providers around the world.

In 2015 the exchange’s customers were hacked, losing about $400,000, and in 2016 about $73 million more was stolen from its customers’ accounts. The exchange’s access to US dollar payments and withdrawals has been curtailed.

Tether is a cryptocurrency (a so called stablecoin) which Tether Limited had claimed to be pegged to the US dollar. Tether is closely associated with Bitfinex, with whom, as of 2018, they shared common shareholders and management. In 2017, critics raised questions about the relationship between Bitfinex and Tether.

In February 2021, Bitfinex agreed to pay $18.5 million in a settlement with the New York Attorney General’s office regarding allegations over Bitfinex parent iFinex making false statements about the backing of Tether and the movement of hundreds of millions of dollars between the two companies to cover up massive losses by Bitfinex in 2017 and 2018. As part of the agreement, Bitfinex will maintain its prohibition on trading activity with New Yorkers.

In 2021, Bitfinex repaid their remaining loan balance to Tether in full.

According to an unaudited 2019 Bitfinex accounting report, in 2018 they had gross profits of $418 million, expenses of $14 million, net profits of $404 million, and dividends of almost $262 million. Bitfinex raised the $1 billion investment in 10 days. The reported figures for 2017 were $333.5 million in gross profits, $6.8 million in expenses, $326 million in net profit and $246 million in dividends.

On October 15, 2021, it was announced that Bitfinex will pay a $1.5 million fine to the Commodity Futures Trading Commission for illegal, off-exchange retail commodity transactions in digital assets with Americans.