Bitfinex cut off by HSBC
Bitfinex and Tether have banking problems.
Wells Fargo had been a corresponded for Bitfinex's Taiwan-based accounts until last year when it all fell apart after Wells refused to process wire transfers. Since then, it's been a series of shifts, including this week when the company briefly stopped accepting deposits.
Now, the Block Crypto reports that the company briefly banked with HSBC via a private account but it "is speculated that HSBC was not aware that it was providing banking for Bitfinex and therefore abruptly closed the previous account," which is what caused the service disruption.
Now they say that Bitfinex appears to be banking with Hong Kong-based Bank of Communications and using Citigroup as an intermediary for USD wire transfers.
Bitfinex also appears to be taking pains to keep its bank info private because every time it's revealed, executives higher up the food chain shut down the relationship.
So how long will this one last?
To me, I find it heartening that they continue to scramble to find banks. If the whole thing was a scam (as rumored), you would think they would have made an exit by now.
