Cryptocurrency News-BitFinex accused of Fraud

bitfinex crypto exchange

Recently, there have been allegations of money laundering as well as fraud against the cryptocurrency exchange BitFinex. BitFinex has initiated an inquiry into these allegations. It remains to be seen whether there is any merit against these allegations or not.

The defrauding allegations have been due to the shell companies created by the cryptocurrency exchange. According to the allegations, the cryptocurrency exchange is laundering money to Columbia.

The exchange also released a statement which clearly stated that these are unfounded rumors and these allegations do not hold any kind of merit. Moreover, none of the authorities have actually questioned about the allegations. Also, the exchange clearly stated that is there is no substance in these allegations; the authorities are not acting against it either. At the same point in time, there are no restrictions on part of the users as well.

As a result, the operations of the cryptocurrency exchange are going completely fine. However, any kind of allegations against the cryptocurrency exchanges will just add fuel to the fire. The cryptocurrencies might start to fall again.

The cryptocurrency exchanges are just based on the confidence of the consumers. If the confidence is dented, the cryptocurrency exchange will lose the customers quite fast. This will also mean a sell-off in the cryptocurrency market. As a result, the valuation of the cryptocurrencies will also go down. This is the reason why these allegations are pretty serious. If any of these allegations are proven, it will mean a drastic blow to the cryptocurrency universe as a whole.

Most of the cryptocurrencies are just now recovering from the fall which has lasted for months together. If any such allegation is found to be true, then the cryptocurrency exchange will again start to fall further. This will be a huge problem for most of the investors as the cryptocurrencies have fallen significantly from their buying prices. In the last few months, the market cap of the cryptocurrency universe has fallen. As a result, even the investors which are invested in the frontline cryptocurrencies have lost a significant amount of money. This is the reason why any such allegations against a reputed cryptocurrency exchange will hurt the entire market.

For now, however, it seems like the cryptocurrency universe is holding out. Most of the cryptocurrencies are actually in the green. It remains to be seen whether this continues or whether the cryptocurrencies start to fall once again.

David is passionate about learning cryptography, tech and the Internet. He has years of experience working at international investment projects. Growing interested in Blockchain and cryptocurrencies in late 2015, he joined Smartereum as an editor.

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