Bitfinex Review: Operating Illegally without the required authorization in multiple EU jurisdictions. | ICORating


Cryptocurrency exchange

Operating Illegally without the required authorization in multiple EU jurisdictions.

1 Accepted
Bitfinex may be the biggest but are also the shadiest exchange out there. Their customer support is awful and can be quite rude. You are lucky if you eventually receive a scripted 'copy and paste' response that is completely irrelevant to your concerns. They ignore my questions and just completely stopped responding to me after a few emails leaving me in the dark. I then emailed the compliance department and they were less than helpful and also refused to provide an reasonable answer to any of my questions and abruptly stopped responding, once again.The main reason why bitfinex grew so fast is because the dodgy founders also have full control over another company called TETHER. They are blatantly advertising false and misleading information on the tether website claiming that thier reserves are regularly audited when they are clearly not done so by anyone who could be deemed as recognized. The issuance of tether is unregulated and allegedly th company have a concerningly low level of commitment to the integrity of their operations. There are numerous studies availiable online that show the correlation between the rise in btc and the increase in tether issuance. The studies also claim Bitfinex is abusing it's dominant market position and abusing thier control over tether issuance to manipulate major cryptocurrency markets at the expense of retail consumers. Do not margin trade on bitfinex. Their company policy allows and encourages insider trading and wash trading and employees of bitfinex use tether to move the market prices against retail consumers positions. Margin trading is not available to institutional investors, however intitutional investor are allowed to lend money to retail investors at a premium interest rate and bitfinex employees via insider trading, make huge gains from forcing liquidations. Bitfinex employees fail to acknowledge compliance requirements and ignore correspondence in relation to such requirements. Stuart from bitfinex's legal council fails to acknowledge the latest EU legislation. Under BVI law, bitfinex are now obligated to operate within accordance to the regulatory requirements of the jurisdiction they are servicing. Bitfinex also failed to recognize that under EU legislation, bitfinex would be defined as a third country firm, meaning the bitfinex exchange would fall under the scope of the latest EU legislation due to their ongoing activities. However, stuart claims insider trading rules and market abuse legislation is not applicable to bitfinex or the employees and they can do what they wish. Stuarts smarmy response suggests that bitfinex feels they are untouchable and are somehow above the law. But when i respond quoting new relevant legislation in regards to bitfinex's activities, stuart all of a sudden goes completely quiet and is unable or unwilling to provide a response.
New Rumour
05 Sep 2018 by Trustpilot

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