Bitfinex users unable to withdraw funds, $430 million drained from exchange cold wallets

Approximately $430 million worth of Bitcoin and Ethereum have exited the exchange's cold wallets.

Tether holders seem to be cashing out into other cryptocurrencies such as bitcoin, ether, and other stablecoins as they try to leave the exchange.

The total amount of money that has been cleared out of the exchange's wallets corresponds to a sum of more than $430 million when factoring in stablecoins and other cryptocurrencies where data is not readily available.

A growing number of users have reported that they have not been able to take fiat currencies out of the exchange, and some, inclusively, have been allegedly banned for asking about fiat withdrawals.

At the beginning of 2014, Mt Gox, a Japan's-based trading platform, was considered the largest bitcoin exchange in the world.

On Feb. 7, 2014, the exchange stopped all bitcoin withdrawals, claiming that it was merely "To obtain a clear technical view of the currency process." After a number of weeks of uncertainty, on Feb. 24, the exchange suspended all trading activities and the website went offline.

Now, the parent company behind the USDT token plans launch a $1 billion initial exchange offering that could help Bitfinex stay afloat.

According to the analyst, there could be short-term panic in the market, but people will then realize that the only way to get out of tether will be by quickly spending their USDT on other cryptocurrencies so that they can move out of the exchange.

These facts have had a huge impact on the platform's credibility, triggering an enormous exodus of traders that want out of the exchange.

Bitfinex's funds remain confiscated by government authorities and a growing number of users are attempting to get their funds off of the exchange.