Bitfinex have had $180million in funds frozen by Wells Fargo and in addition none of the Taiwanese banks will deal with them.
Fiat withdrawals have stopped. So people are getting their money out by buying btc and withdrawing, hence the higher price (due to higher demand).
Don't deposit any money on bitfinex and if you have coins there, withdraw them - better safe than sorry.
How can people buy bitcoins when clearly the seller is not going to be able to withdrawal fiat themselves? so it's kind of a trap for sellers right?
Unless they have their own coins and selling their own coins at high prices with this opportunity?
What ever you do right now in bitfinex will result in one way trap of your money stuck whether you trade btc or other altcoins you can't take out any fiat.