After Allegations Of US Traders Still Using Their Exhange, Bitfinex Promises To Try And Prevent It

The media is responsible for many things in the world, like the perpetuation of rumors and (some believe) which president could be elected. However, Bitfinex is now blaming their own problems on the media, as they fail to prevent US residents from participating on their platform.

  • A resident in New York has managed to create an account with Bitfinex, despite bans.
  • Bitfinex is blaming the lack of preventing this account on the media.

The traders in the United States are one of the biggest groups that are presently trying to get involved with cryptocurrency. While there are some reports to suggest that this is a hedging plan against what could happen in the American economy, a more imminent concern is in the way that Bitfinex is handling its platform. New allegations are coming out that Bitfinex is flouting regulations, due to the ability of US customers to still access their platform. However, they are working to assure consumers that they are trying their hardest to stop these traders.

Bitfinex released an official announcement on Friday, confirming reports from The Block that a resident of New York named “ImaNYresident” managed to open an account on the platform. All the resident appeared to have to do is check a box that promised that they were absolutely not a US citizen, which isn’t exactly strong security.

The situation doesn’t look very good for Bitfinex, especially after the legal scrutiny for claiming that the company hasn’t stopped serving US traders. According to the New York Attorney General, Bitfinex and Tether have both offered unlicensed services to cryptocurrency investors in New York through this year.

The announcement, however, tells a different story. Bitfinex defended itself, saying,

“We remind United States persons that they are not welcome on our platform.”

Interestingly, the reason that Bitfinex stated it was unable to maintain the geographic restrictions due to journalist Frank Chaparro.

The platform said,

“We think it’s unfortunate that Mr. Chaparro would rather associate himself with these actions than actively attempt to help us uncover and punish fraudulent behavior on our platform. This kind of ‘gotcha’ sting also speaks volumes about his and our other detractors’ true motivations.”

Right now, it is clear that the platform sees it as the media’s responsibility, rather than their own, to discover the fraudulent behavior and report back at this point. Some companies will do anything to reduce their costs, but Bitfinex will ultimately have to answer to the authorities if this pattern continues.

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Krystle M
Krystle is an American cryptocurrency blogger that wants to see the future of crypto and blockchain technology evolve. She has been writing about cryptocurrency for about a year, with a special interest in blockchain technology and regulatory measures around the world. While away from writing and learning about the changes in the cryptocurrency industry, she likes to indulge in science fiction novels and further her experience in playing both guitar and piano.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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