Trading November 20, 2017 Daily Hodl Staff

Is Bitfinex the New Mt. Gox? Withdrawal Issues Raise Alarm

Redditors are reporting serious issues with withdrawing money and coins from cryptocurrency exchange Bitfinex. They’re also warning that any exchange using Tether to peg coins to dollars and euros may be insolvent.

The legal terms on Tether’s own website are also creating concern, as pointed out by Twitter user @bitfinexed:

“There is no contractual right or other right or legal claim against us to redeem or exchange your Tethers for money. We do not guarantee any right of redemption or exchange of Tethers by us for money. There is no guarantee against losses when you buy, trade, sell, or redeem Tethers.”

The alarm bells are also going off on Twitter, with some users calling Bitfinex the new MtGox.

Bitfinex is the next MtGox. People are starting to scream about it in droves. It’s becoming a big problem. This is exactly how the MtGox crash began and then poof. It was gone along with millions in user funds https://t.co/oIsUrJkGVy

— Bronxr (@BronxR) November 18, 2017

In response, Bitfinex posted a Tweet reassuring customers not to worry about its solvency. The company claims a coordinated conspiracy to disrupt the market is underway, and promises to release a formal statement in the near future.

Bitfinex is solvent and both fiat and crypto withdrawals are functioning as normal. We are seeing increasing FUD which we believe is a co-ordinated attack to create a market disrupting event 1/2

— Bitfinex (@bitfinex) November 19, 2017

Always ask for evidence before drawing conclusions. We are grateful to those who have defended against these reckless allegations. A formal announcement is forthcoming. 2/2

— Bitfinex (@bitfinex) November 19, 2017