IFinex Inc. (operator of Bitfinex exchange) and Tether Ltd. stated that the American bank Wells Fargo has stopped servicing outgoing transactions from its Taiwanese financial units, thereby blocking the ability of clients of cryptocurrency platforms to withdraw funds to their accounts. Writes about this Law360.
Not only has Wells Fargo suspended servicing customer accounts, iFinex and Tether say, but it also has not provided any explanation to shed light on the situation.
It is assumed that as a result of Wells Fargo's actions, $ 180 million, previously made by users as deposits, were blocked.
Due to the inability to comply with the requests of customers wishing to withdraw funds to their bank accounts, both companies filed against Wells Fargo in a California federal court.
Bitfinex, however, has already made a clarification, saying that Wells Fargo acts exclusively as a correspondent bank and that there is no talk of blocking funds.
We do not bank with Wells Fargo; they serve as a correspondent bank only. Funds are not frozen. This isn't a regulatory action.
— Bitfinex.com (@bitfinex) April 7, 2017
At the same time, the Hong Kong exchange has confirmed that it is indeed experiencing delays in payments, however, it claims to have other channels available.
Outbound wires are experiencing delays because of this, but we have other outbound channels available.
— Bitfinex.com (@bitfinex) April 7, 2017
The Tether platform uses blockchain technology for fiat currency transactions. Its main products include Tether Dollars (USDT), which are backed by a Taiwan bank trust and are traded at a 1: 1 ratio.
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