[2017-05-06] Friedman LLP Audit Will Prove If Bitfinex Is Solvent Or Not

This is like a corporation having to restate their earnings. In the equities world, this is often the beginning of the end, because getting to the state where you need an independent auditor to "clear" your business means you've run it into a very dubious place to begin with. This "audit" isn't going to solve any problems for BFX. Their reputation is already sullied in the Bitcoin sphere, and in the banking world, they've already been subject to a hard ban by one of the largest banks in the world (JP Morgan runs Wells Fargo), so don't hold your breath about those banking "alternatives".

The other guys in the banking space take heed when the big boys ban someone, so they're not going to be too keen helping out an exchange that has perceived money-laundering problems (which is probably why they got flagged in the first place). This is the legacy system pushing back, big time, but it is also part of BFX's overall pattern of incompetence that drives them into such a corner, strategically speaking.

I haven't trusted these guys since their first "hack", and when they started using Tether to magically pay people off, all the while inflating the Tether supply and restricting withdrawals to BTC only (and watch while that starts to "fail" too), all I think we're seeing is the beginnings of "Gox 2.0", even if it isn't starting out the exact same way.

Pass or Fail, this "audit" isn't going to help BFX or their trapped customers at all.

Don't even get me started on how the premium between BFX and other exchanges has now reverted back to normal limits because the management let large whales the ability to transfer out - but not the smaller suckers.

Topic: [2017-05-06] Friedman LLP Audit Will Prove If Bitfinex Is Solvent Or Not (Read 6044 times)