Bitfinex users and investors seem to be worried about the current situation that the exchange is experiencing. The exchange has withdrawn around 17,000 Bitcoin (BTC) and some Ether (ETH) in the last 24 hours.
Bitfinex Wallet Moves Over $165 Million
According to the Twitter user Whale Alert, several millions of dollars have been moved from Bitfinex’s wallets. On April 26, Bitfinex moved 13,377 Bitcoin, worth more than $70 million. Meanwhile,
— Whale Alert (@whale_alert) April 26, 2019
Other smaller transactions were also performed from the exchange that had a total value of $95 million. Some of them were in ETH while others in BTC.
iFinex, the parent company of Bitfinex and the stablecoin Tether (USDT), are currently being investigated by regulators in New York. Apparently, Bitfinex used $700 million from Tether in order to cover up losses of $850 million. However, the exchange did not inform anything to users about this situation.
The news triggered large crypto withdrawals from Bitfinex to other wallets or platforms. Apparently, users were not sure about the platform’s capabilities to sustain Tether’s price and to remain solvent. The transactions processed by the platform could be users moving their funds out from the exchange.
Officials of the exchange wrote about it:
“We are and have been actively working to exercise our rights and remedies and get those funds released. Sadly, the New York Attorney General’s office seems to be intent on undermining those efforts to the detriment of our customers.”
In this blog post, the company explains that both Bitfinex and Tether are financially strong. Moreover, all the cryptocurrency market has been affected by the current situation that the exchange is experiencing.
Most of the digital assets in the space lost between 5% and 10% on April 26. Now, they are operating stably without major movements.