Leading cryptocurrency exchange BitFinex has been in the center-stage of several controversies over the past few months. The biggest blow to the reputation of the company came yesterday when Polish authorities alleged that BitFinex may be involved with the Colombian drug trade – an allegation that BitFinex has now denied.
It was alleged that BitFinex was being used to launder drug money. Earnings made in fiat currency via the narco-trade in Colombia were converted into cryptocurrencies to make the flow of money untraceable. The scandal involved multiple nations as well as a huge sum of money. International policing agencies such as the Interpol were involved with the trade.
Hours after our report detailing out the reports from the Polish media, a BitFinex representative reached out to us with this statement from the company:
"Bitfinex can confirm that it is aware of the current allegations that have been reported by Polish media over the past several hours. Bitfinex believes that these allegations are untrue and Bitfinex customers and operations are unaffected by false rumors. Bitfinex is proud to be the world’s leading crypto exchange, and in this capacity works tirelessly to remain in strict compliance with authorities and regulators worldwide."
BitFinex’s statement distances them from all these allegations of being involved in the Colombian narco-trade. However, there have been a number of other controversies that BitFinex has been a part of in the past. The company was recently subpoenaed by the SEC for undisclosed reasons. Moreover, there have been many questions asked over the transparency of the firm and the details of their banking systems.
BitFinex is one of the oldest cryptocurrency exchanges in the markets and has a lot of credibility. However, allegations such as these can hurt the reputation of the company. Stay tuned with us for more updates on this story as it develops.