Are legitimate ‘institutional investors’ really coming onto Bitfinex’s platform? I don’t think so.

FUD! Bitfinex is not Tether and Tether is working fine!

Well, about that.
  1. Buy Bitcoin from an OTC trading firm, or daily Bitcoin auction though something like Gemini.
  2. Buy Bitcoin by sending money to exchanges such as Bitstamp, Kraken, if you’re non-US, or Coinbase/GDAX/Gemini if US based… which all have far better reputations than Bitfinex.
  3. Buy hundreds of millions of dollars of unbacked Tethers, to send them to Bitfinex, in order to THEN buy bitcoin…

“Institutions are coming!” We have heard this before from Bitfinex, and it was not true.

Bitfinex admits defeat with re-establishing normal banking relationships

A dramatic price rally just prior to Bitfinex exiting US marketplace

Side-note: If you were an unfortunate customer of Bitfinex, and selling your Bitcoin in order to buy a house or a large purchase, and the exchange knew they could not send you the USD, you paid fees for a service which they knew they could not perform, and you had no way of knowing because they did not inform customers for weeks.

And then, you paid fees again when you had to buy Bitcoin again to withdraw and sell on another exchange… and pay fees again.

Massive jump in prices on Friday, August 4th, 2017

Price reaction immediately after bad news

18:12 UTC, for us Military types.
  1. Exchange gets hacked, loses significant amount of Bitcoin
  2. Starts engaging in funny business (BFX Tokens, 36% seizure of all accounts, BFX token ‘redemption’ which just gave most people ‘shares’ in BFX and money they cannot realistically withdraw in real USD)
  3. Cut off from traditional banking and only way out is Bitcoin.
  4. Absolutely massive price rally bringing in massive media attention and hype…
  5. 💥
Tether in circulation in 2017, Tether has not published any audits despite their claims to be professionally audited.

It’s not just US Banking. Bitfinex has not established banking with other fiat currencies either.

Bitfinex Lawsuit against Wells Fargo
Information shared by Bitfinex
Information shared by Bitfinex

BFX did not pay back significant majority BFX tokens. Tokens were converted into equity, otherwise known as a full blown bail-in.

Bitfinex financials
Bitfinex fee structure
Estimated trading fees from August to April 2017
Disclaimer: These numbers are estimates.

But wait, Bitfinex has record volumes? It must be new institutions getting in on Bitcoin. FUD!

24hr stats on August 13, 2017
  1. Margin Buy
  2. Seller has USD
  3. Seller offers USD for loan
  4. New margin buy funded from Sellers USD loan offer.
  5. GOTO 2;
Skyrocketing margin debt

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Blog for @Bitfinexed on Twitter. Exposing possible fraud by largest Bitcoin exchange, Bitfinex/Tether

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Bitfinex’ed

Bitfinex’ed

Blog for @Bitfinexed on Twitter. Exposing possible fraud by largest Bitcoin exchange, Bitfinex/Tether

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