Bitfinex, among the largest cryptocurrency exchanges, has been under scrutiny from the U.S. Commodity Futures Trading Commission (CFTC). Bitfinex has opened an ING account recently, only after having lost its Wells Fargo relationship late 2017, according to Bloomberg News.
ING spokesperson Harold Reusken confirmed that, Yes, Bitfinex is a customer but would not say anything further about the relationship, citing customer confidentiality, except to say that the bank conducts more extensive due diligence on cryptocurrency transactions.
The bank conducts extra due diligence with parties in the chain of cryptocurrencies rather than those in traditional markets that are conducting payments with cryptocurrencies.
ING Supports Cryptocurrency:
Bitfinex has not identified which banks it has been making transactions with since last year.
Making the ING account partnership even more important.
Since ING is a global bank that is willing to work with one of the world’s largest cryptocurrency exchanges. This is a hot topic within the cryptocurrency communuty & markets because the nonregulated cryptocurrency venues provide little information about their financial operations.
Wells Fargo discontinued its role as a Bitfinex correspondent bank in March of 2017.
Bitfinex has been under CFTC scrutiny since early December on account of a lack of information provided about Tether (USDT).
Tether is a digital currency controled by the same management team as Bitfinex. Hhhhmmmm
On account of the lack of evidence from Tether, the CFTC on Dec. 6 issued subpoenas to both USDT, Tether and Bitfinex, according to a source interviewed last month.
Neither Bitfinex or Tether have yet provided evidence of its holdings or submitted to an audit.
Tether has claimed the coins are backed by U.S. dollars held in reserve.
Robert Ford, an outside spokesman for Tether and Bitfinex, did not immediately return an email seeking comment.
Around $2.2 billion in Tether coins circulated as of Tuesday, According to a Tether report.
Tether is the second-most traded cryptocurrency after bitcoin, according to Coinmarketcap.com data.
A trend has formed recently, every time bitcoin gained, Tether did as well, which seemed as if they were printed to support the bitcoin quote. Should Tether destabilize, it will mean the next blow for cryptocurrency, he said.
Tether Controversy Continues
The Tether controversy continues as USDT’s market cap grows despite the lack of an audit proving that tokens are full-backed by USD reserves.
Bitfinex and Tether told Bloomberg they routinely receive legal process from law enforcement and regulators conducting investigations, and that it is their policy not to comment on any such requests.
As Tether’s market cap ballooned to nearly $2.3 billion in January, questions have been raised about whether USDT is fully-backed by U.S. dollars stored in company-owned bank accounts — as Tether claims.
Also read: CFTC subpoenas Bitfinex and Tether as questions mount over audit
Some, most notably pseudonymous critic Bitfinex’ed, have alleged that Tether is operating a fractional reserve to artificially inflate the bitcoin price and — he claims — cover up alleged insolvency at Bitfinex. The exchange, meanwhile, has promised to pursue legal action against individuals making “patently false” claims about the company.
While these claims have not been proven, Tether’s long-awaited balance sheet audit has yet to materialize. CCN reported that the relationship between Tether and its auditor, Friedman LLP, has been dissolved, although neither firm responded to requests seeking more information.
Bitfinex’ed alleges that is issuing USDT tokens that are not actually backed by actual dollars stored in company-owned bank accounts. These Tether tokens, he claims, are then being used to purchase bitcoin, either to spur on rallies or to mitigate losses during downtrend.
BITFINEX, CFTC, ING