Bitfinex Issues Fiat Deposit Update, Decides to Place a Hold for Only Some Customer Accounts

Bitfinex Decided to Place a Hold on Fiat Deposits, But Only for Some Customer Accounts

In a new post on Medium, Bitfinex has decided to put a temporary hold on “certain customer accounts,” as of October 11^th. This hold will only impact fiat deposits that specifically involve USD, GBP, EUR, and JPY. The big cause of this trouble has to do with the complications that are happening with processing transactions. Along with posting on Medium, Bitfinex is making sure as many users as possible are informed about the changes by reposting it on Twitter, only writing, “Fiat deposit update – October 15th, 2018.”

Fiat deposit update – October 15th, 2018. https://t.co/F8o2ltVCN4 pic.twitter.com/ukE9JsRB0j

— Bitfinex (@bitfinex) October 15, 2018

The post also indicates that there are only a select group of customers that seem to be impacted, so Bitfinex took the time to let customers know a couple of things:

1. “All cryptocurrency and fiat withdrawals are, and have been, processing as usual without the slightest interference.”
2. “All fiat (USD, GBP, JPY, EUR) withdrawals are processing, and have been, as usual.”
3. “Fiat deposits have been temporarily paused for certain user groups.”

While the company is working through these changes, consumers can expect to have a new and improved system that governs the fiat deposits. The changes are exchanges to be made by October 16^th, though the company has continued to apologize for the issues that these customers are facing right now.

Of course, as with any changes, Twitter users had plenty to say about the change, even though it won’t be around for long. Bitfinex seems to be under scrutiny right now for the use of the USD Tether stablecoin. Though it is supposed to be linked as a 1:1 exchange, there’s no audits that support this claim, which may negatively impact the market as well, considering $2.6 billion is being held in USDT.

Even though the Medium post doesn’t reflect it, it seems that all of the USD deposits are presently being held up. The Block predicts that the situation should become more stable within the next week or so. However, along with Bitfinex’s decision, other platforms are opting to hold up their Tether transactions until everything is worked out.

Kucoin, for example, said,

“Due to USDT wallet system maintenance, we have decided to temporarily close deposits and withdrawals for USDT. We apologize for any inconvenience caused during the upgrade. When everything has been resolved we will re-open deposits and withdrawals for USDT, please wait for our further updates.”