Bitfinex and Noble Bank Linked In Yet Another Report
Even though the idea that Bitfinex has a new partner has just been a rumor, the voice perpetuating it are getting louder and bolder. With three different individuals suggesting the partnership, Bloomberg reports indicate that Bitfinex has accounts with Nobel Bank International, which is located in San Juan, Puerto Rico. However, Noble Bank infamously doesn’t actually hold any of their own funds, fiat or otherwise, since they use the Bank of New York Mellon as the third-party banker.
Like the rumors suggest, this is far from the first time that Noble Bank and Bitfinex have been linked. CCN recently reported that there was a report in March from Bitfinex themselves that said they would potentially use Noble Bank for their financial services, though Tether was also included in this report. Tether is a startup for cryptocurrency that uses USDT tokens for trading purposes.
Tether has always been closely connected with the Bitfinex, since they share a management team to keep both parties thriving. However, they both have opted not to discuss their relationship publicly. Tether seems to be fairly private about their information as a whole, considering that they’ve never even released a third-party audit that shows the USD backing for their tokens as their market cap exceeds $2.5 million.
In the report from BitMEX, they placed focus on the increase in cash deposits with Noble Ban within the last year, which they believe was a positive suggestion of growth in the crypto world. However, a reputable and anonymous source says the Noble’s substantial growth is due to their own work. To put this in perspective, their 2016 cash deposits alone reached $191 million, while their 2017 reports indicate that this level rose to $3.3 billion.
Bitfinex has had a difficult road to finding the banking partner that is willing to join them, which has been well-established through trackable documentation over the years. This path has been a result of their involuntary closing by Wells Fargo. To gain this information and more, the US Commodity Futures Trading Commission (CFTC) subpoenaed both Bitfinex and Tether in December 2017. However, the results of this research has not been made available as general knowledge.
Though there have been multiple requests from news outlets to make a comment on these concerns, neither Noble Bank nor Bitfinex has complied.