Bitfinex and Tether banking info – What to expect of this FUD

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Tether (USDT) has been in the center of attention lately – with the price of this coin supposedly pegged to USD sliding there have been fears that now is actually the time Tether crashes and all Tether-based exchanges will become insolvent.

This has not happened yet though news of various degree of FUD have been circulating. On October 16th some info on banks that Bitfinex and Tether use has leaked into the press. Here’s what is going around:

1) Bitfinex resumed taking fiat deposits and provides bank info but warns not to disclose it:

This banking information is being provided to you for purposes of contributing good faith funding to your account on Bitfinex. At all times, you are subject to our Terms of Service. This banking information is commercially sensitive and confidential. You should be very careful with this information. You are asked to keep this information to yourself and to not share it except with your financial institution. Divulging this information could damage not just yourself and Bitfinex, but the entire digital token ecosystem. Accordingly, you are cautioned that there may be serious negative effects associated with this information becoming public. Pursuant to the Terms of Service, Bitfinex is not liable for or responsible for the actions of third parties.

A statement like that is against everything Bitcoin stands for – we can only comment that if disclosing banking information of one exchange could “damage the entire digital token ecosystem” then that token ecosystem is not worthy of existence.

Obviously none of that will kill Bitcoin.

2) Bitfinex supposedly banks with Hong Kong-based Bank of Communications

through a private account of PROSPERITY REVENUE MERCHANDISING LIMITEDU.S. based Citibank acting as the intermediary bank (reported by The Block)

To make a deposit you have to apply for one and have your application reviewed by Bitfinex, and only after that you will receive the banking info for your deposit. Source.

3) Tether supposedly banks in the Caribbean

reports are that it’s the Bahamas-based Deltec Bank.

None of the information is confirmed, just like there has been no proper Tether audit.

If you are worried the potential Tether crash and the consequent insolvency and evaporation of Bitfinex and other Tether-based exchanges is going to kill Bitcoin – that is probably just panic talk. Here’s a good angle to look at it all:

Bitfinex / Tether alternatives

If you are worried about Tether being unreliable (and you have all the reasons to), consider using Bitcoin buying and trading platforms that are not tied to it.

If you wish to use a large Bitcoin exchange and make bank deposits and withdrawals – look into GDAX, Gemini, Bitstamp, Kraken.

If you wish to buy Bitcoin with a credit card use (worldwide) or Bitpanda (EU).

If you wish to have a portfolio of altcoins as well – exchange your Bitcoin into them using Coinswitch or buy altcoins directly.

If you wish to buy Bitcoin anonymously or locally – consider Localbitcoins and Paxful.

Stay safe and prosper!

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