Bitfinex: The Rumors of "Insolvency", Banking Partners' Escape, and the Suspension of Fiat Deposits

On October 8, Hong-Kong-based exchange Bitfinex has announced that it is not under the immediate threat of insolvency and the related rumors are unsubstantiated, as well as false.

In the meantime, Bitfinex is testing its improved solutions, it remains to be seen about the possible consequences for the crypto industry and to be confirmed that this is not a repetition of the story with Mt.Gox, which some traders draw a parallel to, but simply the implementation of a "New and increasingly robust fiat deposit system".

Bitfinex is now banking with HSBC through a private account of Global Trading Solutions.

It's also worth mentioning that all EUR, JPY and GBP deposits are paused but Bitfinex "Expects the situation to normalize within a week".

All of these reasons could have accelerated rumors that Bitfinex has become insolvent.

Last time Tether and Bitfinex proved the existence of real fiat money behind their tokens, after the community had repeatedly expressed scepticism with regard to banking audits and the source of funds.

The spread between Bitmex and Bitfinex reached $970. It was suggested, by some users of the Bitcoin community in Reddit, that the price of Bitcoin on Bitfinex was caused by the massive sales of Tether.

Bitfinex resumed accepting fiat deposits and upgraded its security system.

According to one of them, Bitfinex tech support specialists attributed delays in processing transactions to the change of a banking partner of their payment processor.

Any possible changes in banking partners relationships won't affect security of users' funds, Bitfinex communications director Kasper Rasmussen assured.