Bitfinex

Key Data

• Trading Name: Bitfinex
• Legal Entities: BFXNA Inc. , BFXWW Inc., Bitfinex Securities Ltd, iFinex Inc., iFinex Financial Technologies Limited, Unus Sed Leo Limited, BFX Pay Limited
  
• Activities: crypto exchange and custodian
  
• Location: British Virgin Islands
  
• Regulations: offshore
  
• Key People: JL van der Velde, Giancarlo Devasini, Raphael Nicolle, Claudia Lagorio, Paolo Ardoino, Peter Warrack, Stuart Hoegner
  

In October 2021, it was announced that Bitfinex paid a $1.5 million fine to the Commodity Futures Trading Commission (CFTC) for illegal, off-exchange retail commodity transactions in digital assets with US citizens.

The company was founded in 2012 by Giancarlo Devasini and Raphael Nicolle.

Research suggests that the price manipulation of bitcoin on Bitfinex accounted for about half of the bitcoin’s price increase in late 2017. In April 2019, New York Attorney General Letitia James filed a lawsuit accusing Bitfinex of using the reserves of Tether, a related company, to cover up an $850 million loss to a Panamanian payment processor called Crypto Capital Corp.

The Offering

Key features of Bitfinex include margin trading, derivatives, paper trading, corporate accounts, and enhanced reporting. The margin funding market allows merchants to leverage funding across a wide range of digital assets and currencies according to the currency and rate of their choice. The advanced charting functionality enables users to visualize positions, price alerts, and orders, which can be modified and annotated on the basis of their trading strategy.

Bitfinex Pay offers WebSocket and REST API, which allows traders to integrate the application with existing platforms and products. The Bitfinex Terminal enables teams to view historical price action to enhance market research and develop trading strategies.

Payments (up to $1,000 equivalent per 24 hours per end customer) will usually be received within minutes with zero processing fees for using the service.

Conclusion

Due to some hacks of the stock exchange, manipulation rumors, and involvement in money laundering scandals, we put the company on our “Red Compliance” list.