Bitfinex Defies Black Friday, Triples Minimum fee Without Prior Announcements

If you cannot get over the deals you got on Black Friday, you must be the lucky one, as Bitfinex has certainly defied all odds to increase its minimum wire transfer fee from $20 to $60. The more surprising part was not the cost increase, but rather the silence maintained over it. Generally, when changes in terms of fee or payment or anything related to price is done, the customers are the first ones to be informed, however, the company certainly has other plans as they have maintained the silence throughout.

The move by the exchange can be understood since many cases of irregular withdrawals were on the rise. However, the decision to increase the prices also brought it under the category of one of the most expensive exchanges to withdraw your crypto fortune from, when compared to similar exchanges offering withdrawals at much steeper rates.

The surprising fact is, Bitfinex made several announcements regarding its token offering and a few other aspects. However, they deliberately kept silent on the increased withdrawal charges — the only way a user can know about the increment if they check the Exchange schedule right after the change.

Bitfinex has been experiencing delays in withdrawal leading upto a month, where they had to pay a compensation fee to the customers in some instances. The issue of slow processing is being worked out, but the delays could have prompted the company to increase the cost.

Kasper Rasmussen, the head of marketing for Bitfinex seems the increased price is not the cause of any worry to the company or its customers. He says,

“Our fee schedule remains subject to change at any time and for a wide array of reasons. This could reflect added complexities associated with a given token, transaction or process, or supply/demand factors.”

This incident is not the first change regarding the fee that the company has initiated without offering an official statement or reason behind it. Not so long ago, the Bitfinex also increased a charge of 3% on wire withdrawals. A report says,

“Two weeks ago, Bitfinex added a 3% fee on wire withdrawals that exceed more than $1 million in aggregated value or that accounted for more than two withdrawals during a period of 30 days. Although that fee was also effective immediately, Bitfinex did issue an announcement on that change.”

These changes into the system are being seen as a subtle way to defer the customer from making small wire withdrawals. The increased cost would undoubtedly limit the withdrawals to a monthly basis. However, the increased price would only make small retailers and investors move away. Many exchanges such as coinBase Pro offers the same service at $25, and Kraken is even lower at $5.


Source
Author: Prashant Jha
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Major Crypto Exchange Bitfinex Obtains Banking Partner in HSBC, Will it Last?

On Oct. 6, Larry Cermak, former editor at Diar and head analyst at The Block, reported that leading crypto exchange Bitfinex obtained a banking partner in HSBC, a $133 billion banking giant based in London.

“Bitfinex is now banking with HSBC through a private account of Global Trading Solutions. Very good fit if you ask me. It’s also worth mentioning that all EUR, JPY and GBP deposits are paused but Bitfinex ‘expects the situation to normalize within a week’” Cermak said.

Why is HSBC Accommodating Bitfinex?

As one of the oldest cryptocurrency exchanges, Bitfinex has experienced some of the most difficult challenges an exchange could face, particularly before major cryptocurrency markets like Japan, South Korea, and the US offered clarity on cryptocurrency regulation.

The exchange’s conflict with Taiwanese banks is well-documented, and in April 2017, Bitfinex initiated a lawsuit against Wells Fargo, a US-based banking giant, for blocking deposits to the banking account of Bitfinex and disrupting operations of the business.

“The decision to initiate legal action is because we cannot allow precedents in this industry where clearing houses can disrupt businesses that are by all metrics complying with the rules in place. If we allow them to simply flip a switch and disrupt business, then there becomes a precedent in the bitcoin industry beyond just Bitfinex, so we believe it is the appropriate time to take action,” Bitfinex said at the time.

Since then, Bitfinex has moved out of Taiwan and relocated to the Caribbean and in May, Bloomberg reported that the exchange partnered with Noble Bank to process transactions sent by its clients.

However, Noble Bank has announced to file for bankruptcy following an in-principle deal to restructure debt in January and with that, the only banking partner of Bitfinex vanished.

HSBC is really the first proper banking partner Bitfinex has obtained since Wells Fargo in 2017. If the deal between Bitfinex and HSBC can be sustained throughout the long-term, it will bring a level of stability to the operations of Bitfinex which the exchange failed to secure in the past four years.

Speaking to The Block, Kasper Rasmussen, director of communications at Bitfinex said that the firm cannot comment on the nature of the partnership between the exchange and HSBC.

“Bitfinex does not, and has never, commented on actual or potential business relationships and this is not subject to change now,” Rasmussen stated.

Given the the $200 million dollar daily trading volume of Bitfinex and the amount of fiat deposits the exchange receives from its international customers, it is not possible for the exchange to unilaterally announce its dependence on HSBC as a banking partner through a private banking account.

It is highly probable that the exchange, with strict Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements, obtained the banking service of HSBC through a strictly regulated channel.

Positive Impact on the Industry

Already, most exchanges in major markets like Japan and South Korea have obtained banking services by large financial institutions and commercial banks in their respective countries. If Bitfinex can sustain its partnership with HSBC, it will have a positive impact on the stability of the crypto market.


Source
Author: Joseph Young
Image Credit: Images from Shutterstock

Bitfinex Launches Decentralized Ethereum Trading Platform ‘Ethfinex’

Bitfinex has launched an Ethereum-based hybrid cryptocurrency exchange called Ethfinex Trustless to give traders more security, privacy and control of their funds, marking the foundation of what the exchange hopes will be a completely decentralized trading model. The platform utilizes Ethfinex, which links centralized and off-chain orders books to gives users full control of their funds throughout the trading process.

Bitfinex Joins the DEX Fray

Ethfinex Trustless provides a liquid, off-chain order book that doesn’t require users to sacrifice the custody of their tokens or endure withdrawal and deposit delays. There are no signups or KYC requirements, and users don’t even need to provide their name, email, phone number, or address to begin trading.

Users are required to hold a minimum one Ethfinex Nectar token in an Ethereum wallet. Ethfinex distributes its Nectar token to traders every month.

Trading pairs will initially be ETH/USDT, OMG/USDT, OMG/ETH, ZRX/USDT, and ZRX/ETH, to be followed by at least 40 more tokens.

Improved Privacy And Security

Bitfinex believes Ethfinex will deliver a new level of security privacy and liquidity in digital asset trading.

The company noted in a Medium blog that centralized exchanges offer highly liquid order books that allow traders to quickly exchange tokens and currencies. The downside of centralized exchanges, however, is that they require the trader to give up control of their currencies along with a fair amount of personal data.

Trading on centralized exchanges also requires time-consuming deposits and withdrawals, which incur long waiting periods and in some cases subject users to losses caused by hacks.

Also read: Bitfinex forces users to submit information, may share with government

More than 57 Ethereum Tokens

Ethfinex presenlty uses Ledger and MetaMask to offer anonymous, trustless, liquidity trading of more than 57 Ethereum based tokens. Users can trade directly against the Ethfinex and Bitfinex orders books.

The platform will expand to include fee structures, user incentives, margin decisions, and profit distribution decisions.


Source
Author: Lester Coleman
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Reactivated SilkRoad Wallet Transfers $100mn to Bitfinex & Binance, Bitcoin Price Pumping Up

The last couple of weeks Bitcoin price are slowly and steadily moving up. While many believe its happening due to the news built-up around Bitcoin ETF, according to Redditor “sick_silk”, it could be because of a huge movement of Bitcoins and its forks from the wallets that were inactive for almost 4 years carrying USD 1 billion of cryptocurrencies.

USD 100 mn lands in Bitfinex and Binance

The Redditor, who has continuously been on the trail investing the wallet containing over USD 1 billion of BTC, BCH, and its forks believe this wallet belongs to the new defunct dark web marketplace SilkRoad. According to his recent post, coins worth USD 100 mn, from the wallet that was inactive since 2014,  has been moved to Bitfinex and Binance wallets indicating the recent rise in prices could be because of these activities. To explain the same, he has built a graph in order to deep dive into the transactions originated from the 111,114-BTC wallet and to follow it.

 Working on this graph indicating the coin movements to and fro from these wallets, he has concluded that at least 15,593 BTC originated from the 111,114-BTC wallet have been moved to Bitfinex and Binance wallets which represent 14% of the original funds

Apart from these two exchanges, he has also been able to track that around 210 Bitcoin have been transferred to Bitmex in 6 transactions. At Bitmex, he also noted that 350 BTC transferred from Bitmex wallets though, maybe after being “washed out”

Matching the dates and activities, the Redditor ends his post by saying

“Surprisingly Bitcoin price is pumping since those funds were starting to be transferred to Bitfinex and Binance wallets (see Binance transactions’ list, August 11th) How do you think this will impact the market?”

Redditors initial investigation regarding this issue

A few days back, “sick_silk” the Redditor posted saying that according to him the owner of a huge SilkRoad related wallet is moving funds actively, dividing it in chunks of 100 coins by sub wallets. The original wallet owned 111,114.62 $BTC / $ BCH, which, as of last week, valued ~ $844M (without taking into account other #Bitcoin forks).He had also noted that the chunks have been divided over time to 60,000 coins then to 30,000 / 20,000 / 10,000 / 5,000 / 500 and now 100 coins.

He also noted that last movements on these sub wallets, before these recent ones, were 4 years and 5 months old (March 9th, 2014) which was pretty close to the SilkRoad take down the date by the FBI.

On being questioned about the wallet, the Redditor said that if it was not Silkroad, the most likely, this wallet belongs to Mt Gox who too announced its public rehabilitation plan. He states that:

“a MtGox cold wallet that has been seized or is still owned by MtGox: in fact the wallet funds moved in March 2014 right after MtGox filed for bankruptcy one month earlier in February 2014; these movements dates are really similar to the 200,000 lost coins “found” by Karpeles which moved March 7th, 2014”

More than the source, the Redditor felt it was more important to bring to the notice of the community, that there could be a dump in the markets which would affect the prices significantly.

It would be interesting to see what would be the next post and where does this lead to.

Whether it is SilkRoad, Mt Gox or any other Whale for that matter, such large movements of cryptocurrencies are always scary. It also seems in the past as well when such large movement, especially in Bitcoin, happen this is a huge dump that happens in the market, having a significant impact of prices. And if what redditor says is true, we could see the Bitcoin price spiraling downwards soon.

Source
Author: Nilesh Maurya
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Sell-Off Over? Bitcoin’s RSI Just Hit Its Lowest Level Since 2016!

Signs are beginning to emerge that bitcoin’s sell-off today may be overextended.


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After hitting a 70-day low of $6,133 on CoinDesk’s Bitcoin Price Index (BPI), bitcoin’s relative strength index (RSI) hit a level (26.4) last seen in August of 2016, according to data from the Bitfinex exchange.

The relative strength index, or RSI, is used for identifying overbought and oversold conditions of an asset by “comparing the magnitude of recent gains and losses over a specified time period to measure speed and change of price.”
When such levels are hit, the indicator suggests price action is approaching a level below the asset’s true value, where a price bounce tends to occur.

BTC/USD rarely hits oversold levels (<30) in the daily time frame, but when it does, price has historically performed well for the bulls. February 6th was the last time RSI levels were below 30, and at that time, prices rallied from $6,000 to $11,788 in just two weeks, resulting in a ~96 percent gain. Prior to that, on August 14th, 2016, BTC registered an RSI level just above 26 when the price showed $563 on Bitfinex. Even through today, the price of bitcoin has not gone below $563 and current levels represent a ~980% price increase.

But while the oversold indicators tend to signal downtrend exhaustion, bulls might want to still proceed with caution before celebrating as bitcoin’s daily RSI has reached lower levels.
According to Bitfinex data, the lowest level recorded since 2013 was 16.1 on August 18th, 2015.



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Author: Pete Rizzo
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One of the Largest Crypto Exchanges is heading to the Caribbean

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Bitfinex and Tether

Bitfinex which is one of the biggest virtual-currency markets has been some kind of mystery in the crypto world. Wells Fargo & Co dumped it last year and from the time, it has been secretive of how fiat money can be transferred without a bank.

According to knowledgeable people in the subject matter, Noble bank which is based in San Juan took over the necessary banking duties for Bitfinex in 2017. Bitfinex was, therefore, involved in third-party account strings in Panama City in order to stay active.

Tether has also been affected and as it shares the management team with Bitfinex which includes the CEO Jan Ludovicus van der Velde. There is little information in regard to how Tether was created and therefore, it trades at the $1 price level due to the fact that each of the coins should be backed by around $1 of fiat. The currency entered the trading world in 2015 and can be an alternative to the Bitcoin volatility.

Global Impact

Therefore, other intractable enshroud the two corporations. According to a person who has information in regard to the matter, regulators have been involved in Tether investigation on the $2.1 billion customer money backing n the virtual coin. The organizations have not yet provided the evidence to the public domain and this lack of transparency has led to critics to Bitfinex and Tether.

Tony Arcieri, who is a software engineer and also a security analysis said this in a report;

“I, and many others, suspect Tether is being used to effectively counterfeit hundreds of millions of dollars of perceived value, which are being immediately reinvested into Bitcoin.”

The US-based Justice Department opened a criminal probe to ascertain if the traders might be manipulating the bitcoin price and also the other cryptocurrencies. Tether and Bitfinex have had market repercussions and this had made the banks fear for money laundering and also other insecurities.

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Strict Rules

Most of the financial organizations have strict rules linked to the customer verification and money laundering and they don’t want to associate themselves with the criminal activities. The Bank of America Corp, the capital One financial corps and also Discover financial services have banned the customers from the purchase of virtual money with their credit cards.

Puerto Rico has been involved in cash influx linked to cryptocurrencies last year. The cash and also the equivalents of cash which are held by the islands financial entities, for instance, Noble reached $3.3 billion in 2017 which was from $191 million in 2016.

$31 million Hack

Noble is involved in the use of the Bank of New York melon Corp as a custodian. Bitfinex was established in Hong Kong in 2013 and in 2016, the exchange was hacked an amount of $68 million. One year later around $31 million worth of Tether was stolen in another hack.

Calls made to the general council on Bitfinex were not answered. Other concerned individuals did not, however, comment on the matter such as Jonathan Gasthalter.

Reputational Risk

Noble is obligated to report the various suspicious financial activities which might help the US government eliminate cases of money laundering. However, foreigner accounts can be anonymous if the assets are declared trusts.

Noble is involved in the connection of the exchange users though housing company and customer accounts internally. By the use of the interbank transfers, a Bitfinex user who has a noble account may have euros or dollars moved internally to their Bitfinex account.

Before Noble

The troubles of Bitfinex started in 2017 march at a time when Wells Fargo passed the message to four banks involved with Tether and Bitfinex that it would not process the wire transfers which were coming to the US.

Therefore, just before Noble started the transactions, Bitfinex had looked for banking solutions everywhere. The firm also was seeking help from Crypto Capital Corp. through its president, Ivan Molina Lee, Crypto Capital was linked to bank Spoldzielczy in Poland which Bitfinex was involved in the use for the euro-based deposits.

A crypto capital representative declined to make a comment and a request made to talk to lee was not answered. Therefore, through a spokesman, they said that the bank did not deal with cryptocurrencies.

Roberts Jan den Haan a Dutch researcher involved in researching Bitfinex and the Tether saga said;

“Essentially, Crypto Capital Corp. and their bank accounts enabled Bitfinex to maintain their access to fiat deposits and withdrawals. No access to fiat banking would make it quite problematic for Bitfinex to function as it is today, especially in relation to Tether and its one-to-one dollar backing.”


Source
Author Wilfried Paul 
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EOS: Seen Headed to $30, Moves Above Litecoin!

EOS has once again displaced Litecoin (LTC) from position 6 on CoinMarketCap, as it moved above $11. Altcoins, as well as Bitcoin, have grown steadily over the weekend. EOS added around 2.6% to $11.60, and is up a net 40% in the past week. But speculative interest may push the asset above $30, at least when it comes to predictions and expectations.

The EOS volumes have returned, and the asset has revisited its peak against BTC last seen toward the end of last year. This time, altcoins are not only gaining in dollar terms, but taking more ground from the leading coin.


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The driver of EOS prices is, at the moment, the general recovery of altcoins and the search for new and promising assets. The other upside are the expectations for the launch of the main net, where the EOS token would serve a purpose to secure block production.

Bitfinex is pleased to announce full support for the upcoming EOS MainNet Token Swap. 
More exchanges are supporting the token registration, with Bitfinex, the largest market, participating in the program. This means that EOS would not need to be moved off exchanges for registration. Currently, EOS is, for about two more months, an Ethereum-based token.

There are less than 60 auctions left for EOS, and in the past day, the auction price has grown. Two auctions saw a price above $11, as the auction usually moves in unison with the market price.

Because of the prominence of EOS, the asset was added for eToro trading recently. But while some claim eToro holds EOS tokens on behalf of the traders, the activity won’t affect the open markets that much. The eToro service does not provide actual exchanges to crypto, but there have been talks the service may soon release an option for individual crypto wallets for the handful of assets traded.

Additionally, the most active EOS trading still happens on exchanges that are well-supplied with Tethers (USDT). Tethers are adding artificial liquidity, allowing users to switch to EOS and trade, without actual funds moving into the market. EOS is seeing the largest volumes on Huobi,OKEx and Bitfinex.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Christine Masters
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