I have been in the Bitcoin community since 2011 and now I smell something that is not right about Bitfinex recently. I believe it is the right time to start this post, to let the community to have a full records of the ongoing history. I also want to start this post to let the whole community watch out for this risk. People are still using Bitfinex, and the trading volume of Bitfinex is still among the largest. However, I have already find the clue of fraud, and the evidence of amateur.

This unregulated exchange is a huge risk for the Bitcoin economy. We need to let more people to know about the risk associated with this exchange, and we should let other traders know.

I am living in China and getting communicated a lot with the bitcoin community there. On 14th Aug, the COO of btc123.com, Chandler Guo, has removed bitfinex from their list of quotations.


Chandler shared a very important piece of information in a Wechat group, indicate that a China arbitrage trading team have find issues when withdrawing bitcoin from the Bitfinex exchange. Soon, I myself get confirmed from the leader of the team, Mr. Zhao, confirmed it. He said that he had to "rummaged around" the whole Bitfinex contact list and trying every way to have a respond, and then got the Bitcoin withdraw done. The bitfinex give him an excuse of something with the evil U.S. government seizing their fund. This has never happened before. Mr Zhao showed us the email:



Evil U.S. government are seizing our fund. The withdraw is slow. Signs of market manipulation. Doesn't it looks pretty familiar? When we find signs of similar problems with mtgox, mtgox is not shutting down immediately. The whole situation of mtgox evolved in about 10 months time.

Now it is the time to be very cautious for us to look into what is happening with Bitfinex. And for those who are not trading there, I believe you will have a good time to look at the show in the next months.