Bitfinex Exchange Claims It Is Very Lucrative To Operate a Cryptocurrency Exchange


The controversial and popular cryptocurrency exchange Bitfinex claims that running a crypto exchange platform is very lucrative. According to the company, iFinex Inc. the company behind the exchange and the stablecoin Tether (USDT), they registered a profit of $404 million last year.

Bitfinex Claims Exchanges Are Very Profitable

In a recently released white paper, iFinex reported a $404 million profit in 2018 on $418.2 million in gross profit. At the same time, Bitfinex disclosed that it seeks to raise up to $1 billion through an Initial Exchange Offering (IEO). The intention is to be able to claim for $850 million that are frozen in bank accounts in Poland, Portugal, and the United States.

As reported by Bloomberg, New York’s attorney general has accused Bitfinex and Tether to cover-up $850 million in losses. This generated controversies in the market about the stability of the Tether stablecoin, the largest in the market.

Bitfinex has also announced that it is launching LEO, a digital currency that would allow users of the exchange to pay lower fees when they trade virtual currencies. Bitfinex will be using 95% of the recovered funds from government seizures to repurchase and also burn the tokens in one and a half year after the day of recovery.

The white paper explains that the firm has between 60 and 90 employees and that they registered expenses of $14 million just in 2018.

Bitfinex will have to work hard in order to recover the trust from clients, traders and the crypto market in general. Thus, this is expected to be a very difficult task for the company.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide