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Bitfinex

Bitfinex

Bitfinex is a digital asset trading platform offering state-of-the-art services for digital currency traders and global liquidity providers.

Bitfinex is a digital currency exchange based in Hong Kong. It was founded by Raphael Nicolle and Giancarlo Devasini in 2012. Bitfinex is the worlds largest cryptocurrency trading platform, and features cryptocurrency exchange, margin trading, margin funding market, ordered types, customizable interface, and API platforms.

Fees

Bitfinex charges "maker" and "taker" fees to its users. Maker fees are fees paid when a user adds liquidity to the Bitfinex order book, and taker fees are fees paid when liquidity is removed from the Bitfinex order book.

In May 2015, 1500 bitcoins were stolen during a hack.

In 2016, Bitfinex was the subject of the Bitfinex hack. In it, $72 million in bitcoin was stolen from the company's customer's accounts. Immediately thereafter, bitcoin's trading price plunged by 20%. After learning of the breach, Bitfinex halted all bitcoin withdrawals and trading.

In that hack, the second-biggest breach of a Bitcoin exchange platform, 119,756 units of bitcoin. Significant hacker funds transactions were signed off by Bitfinex's security provider, without full security.

Shortly after the hack, Bitfinex created BFX tokens, which were used to represent customers' stolen equity. The BFX tokens represented $1 and were issued to account for the value of customers cryptocurrencies at the time of the hack. In April 2017, Bitfinex announced they had bought back all of the BFX tokens, essentially paying back all of customers lost funds.

Arthur Hayes (the founder of Bitmex) and others complained about the lack of detail that Bitfinex provided about the hack, saying "There are so many questions about (Bitfinex)... All of this could be easily rectified by just showing all the figures." Der Velde responded that Bitfinex had "been as public and transparent as possible about (the hack) given the ongoing criminal investigations".

Trial

April 25, 2019, the New York State Prosecutor's Office indict iFinex.Inc, the operator of Bitfinex and Tether. The company is accused of concealing information about the loss of $850 million and of using Tether stablecoins to cover this money. According to the prosecutor's office, Bitfinex transferred these funds to the payment services provider in Panama - Crypto Capital Corp. Bitfinex denies all the accusations in its side, the company intends to challenge the claim in court. On May 13, iFinex.Inc asked the New York City Prosecutor’s Office to lift the transaction restrictions (previously adopted), and also accused the US Supreme Court of abuse of power.

Bitfinex Review

The access to the trading platform Bitfinex is available through a web interface or mobile app. Charts are built using TradingView. This means that you will have access to a wide range of technical analysis tools, such as indicators, Fibonacci tools, trend lines, etc.

The application book is also completely transparent. Although volumes sometimes fall, as a rule, a large number of transactions are constantly carried out with large cryptocurrencies. In order to Fund your account with Bitfinex, you can use a variety of cryptocurrencies. Bank transfers are also accepted. The addition of other traditional payment methods, such as Bank cards, PayPal or Skrill, is not yet known.

If you want to Fund your account in Fiat, you will need to pass the verification. To do this, provide proof of identity, proof of address, Bank statement and signed form in which you confirm the validity of the provided information and documents. In addition to the possibility of replenishment of the account in Fiat no other verification of benefits does not.

Bitfinex charts interface

Withdrawal and pricing

In April 2017, Bitfinex announced that it was no longer able to let users withdraw their funds in USD, Bitfinex and Tether sued Wells Fargo for the decision but dismissed the case few days later. As a consequence, Bitcoins were traded at a price around 100 USD higher than other exchanges[5] as users started buying bitcoins in order to move them to other exchanges and withdraw their funds there.

Shortly after the Wells Fargo cutoff, Bitfinex stated all international wires had been cut off by its Taiwanese bank. Since then, Bitfinex has moved between a series of banks in other countries, without disclosing to customers where the money is stored.

Main Functions

Bitfinex Review, last news, fees

Bitfinex and Bitcoin exchange

The exchange part works like any regular bitcoins exchanges: you put your offer to buy or sell bitcoins. When an order is matched against another, it is executed.

The exchange wallet type is used for this feature.

How to use Bitfinex

Their margin trading feature is unique in the Bitcoin world. Basically, it allows you to borrow funds from lenders (see next feature) to trade bitcoins. If you make a profit, you get the profit and pay the depositor interests. If you make a loss, you reimburse the depositors the whole borrowed amount + interests.

Lending

Their lending feature goes hand to hand with the margin trading feature described above.

If you don't feel like a trader and/or prefer safer investments, this feature is for you. Bitfinex allows you, using your deposit wallets, to lend bitcoins and/or dollars to traders. You can put offers with your chosen terms (which rates, for how long, and how much).

Currencies

Bitfinex is a full-featured spot trading platform for the major cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Ripple, EOS, Bitcoin Cash, Ethereum Classic, Monero, Iota, NEO, OmiseGO, Dash, Zcash, Santiment, Bitcoin Gold, TRON, Qtum, ETP, 0x, RCN, iExec, Augur, QASH, Golem, Eidoo, Time New Bank, Basic Attention Token, Status, YOYOW, SpankChain, aelf, Streamr, FunFair, Ethfinex Nectar Token, Decentraland, Aventus, AidCoin, and SingularDTV. The platform offers leveraged margin trading through our peer-to-peer funding market.

Tether

Tether is an unregulated cryptocurrency pegged to the US dollar. Tether is closely associated with Bitfinex.

Timeline

July 3, 2020
Bitfinex announces it is now offering over-the-counter (OTC) paper trading on its platform.
May 13, 2020
Bitfinex announces it has joined forces with digital asset custody provider Koine to launch an institutionally oriented post-trade service, enabling investors to mitigate counterparty risk and the use of private keys in the clearing and settlement of cryptocurrencies.
December 6, 2017
U.S. regulators send subpoena to Bitfinex, Tether

The U.S. Commodity Future Trading Commission reportedly sent subpoenas to Bitfinex as well as Tether. The companies responded with an emailed statement, “We routinely receive legal process from law enforcement agents and regulators conducting investigations. It is our policy not to comment on any such requests.”

August 2, 2016
Bitfinex announces a hack of their platform resulting in ~120,000 stolen bitcoin.

Bitcoin worth approximately $72M was stolen from the exchange platform, making it the largest cryptocurrency theft since the Mt. Gox hack.

Patents

Further Resources

Title
Author
Link
Type
Date

Ethfinex Liquidity Token:Creating the worlds most liquid exchange for digital assets.Built for the Ethereum community, using Ethereum.

Bitfinex Team

Academic

News

Title
Author
Date
Publisher
Description
Omar Faridi
May 2, 2021
Crowdfund Insider
USDT stablecoin market cap of $51B+ now exceeds insured deposits at most US banks, quarterly report of Tether reserves expected soon.
Vicky Ge Huang
April 23, 2021
Business Insider
Jeff Dorman shares a special situations strategy with low downside and huge upside for investors willing to wade into a new, inefficient asset class.
Tom Fish
January 11, 2021
Express.co.uk
BITCOIN (BTC) investors have today seen the cryptocurrency dramatically enter free-fall, leaving experts divided about the flagship crypto's immediate future.
Brian McGleenon
January 4, 2021
Express.co.uk
BITCOIN is set to rebound after today's dip as 'bullish sentiment' around the cryptocurrency 'hasn't changed'.
Samantha Hurst
November 30, 2020
Crowdfund Insider
Click HERE to find out ⭐ Bitfinex Enables Deposits & Withdrawals for Bitcoin Cash Node. | Crowdfund Insider: Global Fintech News, including Crowdfunding, Blockchain and more.
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References

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