Bitfinex insolvent? Bitfinex and Tether finds new bank to run operations

Last week, it was reported that Noble Bank of Puerto Rico was insolvent and this was significant because they were the main bank which Bitfinex and Tether operated out of. However, we also found out that Tether had been moving its assets away from Noble bank for the last several months into other banks and last week, they announced that Tether and Bitfinex have ditched Noble Bank and are looking for another bank. It was reported over the weekend that they have settled on HSBC bank and will now run operations out of there. There are claims of Bitfinex’s insolvency but they have denied those allegations. I personally do not believe Bitfinex is insolvent because even though the collapse of Noble Bank caught us by surprise, it did not catch Bitfinex by surprise as they and Tether have been moving assets out of that bank for the last several months and probably still have most, if not all, of their assets. Tether’s credibility may have taken a hit though, especially as replacements with less murky backing like the Gemini Dollar and USD coin have come onto the scene. For now, I remain cautiously optimistic with Bitfinex and unless they start locking user’s accounts and stealing funds, I will hold my stance on them.

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