Bitfinex Representatives Refuse To Comment On Partnership With HSBC
The management of the Bitfinex trading platform didn’t comment on rumors about possible cooperation with a British financial company HSBC Holdings plc, although some crypto analysts believe that a partnership agreement could have been signed, The Block reports.
A response to recent online rumours.https://t.co/Q84S17rO3S— Bitfinex (@bitfinex) October 7, 2018
The clients of the crypto exchange were able to deposit US dollars into the private account of Global Trading Solution, and Bank N.A., an American unit of HSBC, acted as the beneficiary bank.
In the blog, the Bitfinex representatives warned customers that all deposits in euros, British pounds, and Japanese yens are suspended, but the situation will soon return to normal. The platform officials didn’t comment on the situation with HSBC, saying that they had never given any explanations with regard to current or future business decisions and had no intentions to defy their principles.
Bitfinex denied insolvency rumors by providing data on the amount of funds stored in its cold wallets. There are more than 148 thousand BTC ($978.7 million) in the bitcoin wallet, 1.7 million ETH ($382 million) in the ether wallet, and 35.3 million EOS ($203.4 million) in the EOS wallet.
The exchange's relations with banks are under scrutiny due to the close connection between Bitfinex and Tether Ltd. Both companies have common investors and managers, most of the Tether transactions are conducted on Bitfinex. Many people consider the Tether stablecoin as an important part of the crypto market due to its impact on setting of prices.
The news about the partnership between Bitfinex and HSBC could reassure all participants in the crypto sphere, but the deposit suspension is of some concern. All interested parties have questions, which gives HSBC the basis for cooperation with the crypto exchange, while other major players, such as Wells Fargo, haven’t started to maintain cooperation with Bitfinex.
As previously reported, Bitfinex brought into circulation approximately 13 million Tether stablecoins.