{"id":37672,"date":"2022-08-01T12:54:41","date_gmt":"2022-08-01T09:54:41","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=37672"},"modified":"2025-08-29T19:55:39","modified_gmt":"2025-08-29T16:55:39","slug":"bitfinex-history-features-and-leadership","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bitfinex-history-features-and-leadership\/","title":{"rendered":"Bitfinex: history, features and leadership"},"content":{"rendered":"<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">Key points<\/h2>\n<ul class=\"wp-block-list\">\n<li>Bitfinex is one of the oldest cryptocurrency-trading platforms, founded in 2012.<\/li>\n<li>Bitfinex is widely attributed to Raphael Nicolle. The company\u2019s chief executive is Jean\u2011Louis van der Velde, and its chief financial officer is Giancarlo Devasini, a co-founder of Tether Holdings Limited.\u00a0<\/li>\n<li>Bitfinex offers a range of services for traders and liquidity providers, including a peer-to-peer lending service and tools for programmable trading.<\/li>\n<\/ul>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">What is Bitfinex?<\/h2>\n<p>As of July 2022 Bitfinex ranked ninth on <a href=\"https:\/\/coinmarketcap.com\/rankings\/exchanges\/\" target=\"_blank\" rel=\"noreferrer noopener\">CoinMarketCap<\/a> by trading volume. <\/p>\n<p>In 2020 Bitfinex executed one of the largest bitcoin transactions\u2014161,500 BTC (about $1.1bn). The fee was 0.00010019 BTC (about $0.68). The exchange\u2019s average daily trading volume is $279m.<\/p>\n<p>The platform supports more than 70 digital assets and four <a href=\"https:\/\/forklog.com\/en\/news\/what-are-fiat-currencies\">fiat currencies<\/a>, including the US dollar, euro, pound sterling and Japanese yen.<\/p>\n<p>After registration a user receives a basic verification level, which allows crypto deposits and withdrawals and provides access to the spot and over-the-counter (<a href=\"https:\/\/forklog.com\/en\/news\/what-is-otc-trading-2\">OTC<\/a>) markets. Two-factor authentication is mandatory.<\/p>\n<p>An advanced KYC level unlocks margin trading and enables fiat deposits and withdrawals.<\/p>\n<p>Bitfinex\u2019s services are available in most countries worldwide, except Canada, Cuba, North Korea, Venezuela, Iran, Syria and Kyrgyzstan.<\/p>\n<p>In 2017 Bitfinex stopped serving US residents amid tighter regulation of digital assets.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">How did Bitfinex start?<\/h2>\n<p>Bitfinex\u2019s story traces back to the lesser-known exchange Bitcoinica, founded in 2011.<\/p>\n<p>It offered trading in contracts for difference (<a href=\"https:\/\/forklog.com\/en\/news\/what-are-crypto-derivatives-and-how-do-traders-profit-from-them\">CFD<\/a>, Contract For Difference) on digital assets.<\/p>\n<p>Within a year of launch the Bitfinex exchange <a href=\"https:\/\/arstechnica.com\/information-technology\/2012\/03\/bitcoins-worth-228000-stolen-from-customers-of-hacked-webhost\/\" target=\"_blank\" rel=\"noreferrer noopener\">suffered<\/a> several hacks; attackers stole more than 60,000 BTC (~$297,000 at 2012 rates).\u00a0<\/p>\n<p>Bitcoinica later ceased operations. Users <a href=\"https:\/\/www.theverge.com\/2012\/8\/10\/3233711\/second-bitcoin-lawsuit-is-filed-in-california\" target=\"_blank\" rel=\"noreferrer noopener\">accused<\/a> the exchange\u2019s founder\u201417-year-old Zhou Tong\u2014of theft.\u00a0<\/p>\n<p>Less than a year later Bitfinex emerged, whose developers used Bitcoinica\u2019s source code as the basis for the new trading platform.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">Who founded Bitfinex?<\/h2>\n<p>Bitfinex is a subsidiary of iFinex Inc. It is incorporated in the British Virgin Islands, with the trading platform headquartered in Hong Kong.<\/p>\n<p>In 2018 Bitfinex and iFinex planned to relocate to Zug, Switzerland.<\/p>\n<p>Bitfinex is widely attributed to Raphael Nicolle. Little is known about him online. He previously supported the activities of the creator of the BCS&amp;T (Bitcoin Savings &amp; Trust) fund, known as Pirate@40, who was arrested in late 2014 for a bitcoin-related fraud scheme.<\/p>\n<p>According to the <a href=\"https:\/\/bitcointalk.org\/index.php?topic=109285.0\" target=\"_blank\" rel=\"noreferrer noopener\">Bitcointalk<\/a> forum, Nicolle planned to create an investment scheme that would guarantee a weekly deposit rate of 2%.<\/p>\n<p>According to the official page on <a href=\"https:\/\/www.bitfinex.com\/about\" target=\"_blank\" rel=\"noreferrer noopener\">Bitfinex.com<\/a>, the company\u2019s CEO is Jean\u2011Louis van der Velde and the CFO is Giancarlo Devasini.<\/p>\n<p>The latter was born in Italy and trained in medicine at the University of Milan.<\/p>\n<p>Devasini traded computer hardware for a long period. In 2012 he was selling DVDs on Bitcointalk for 0.01 BTC, promising free shipping for bulk orders, and in 2013 he joined the Bitfinex team.<\/p>\n<p>The same year Jean\u2011Louis van der Velde joined Bitfinex. A Dutch native, he studied at the National Taiwan Normal University and worked in technology for more than 30 years.<\/p>\n<p>Philip Potter served as chief strategy officer, but left in 2018.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">How is Bitfinex linked to Tether?<\/h2>\n<p>Tether (USDT) is a stablecoin issued by Tether Limited in 2015.\u00a0\u00a0<\/p>\n<p>In 2017 the <a href=\"https:\/\/offshoreleaks.icij.org\/nodes\/82024464\" target=\"_blank\" rel=\"noreferrer noopener\">Paradise Papers<\/a> investigation uncovered links between Tether Limited and Bitfinex. In 2014, in the British Virgin Islands, Potter and Devasini registered Tether Holdings Limited.<\/p>\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/Bitfinex_Tether-1024x819.png\" alt=\"Bitfinex: history, features and leadership\" class=\"wp-image-111941\" width=\"768\" height=\"614\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/Bitfinex_Tether-1024x819.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/Bitfinex_Tether-300x240.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/Bitfinex_Tether-768x614.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/Bitfinex_Tether.png 1200w\" sizes=\"auto, (max-width: 768px) 100vw, 768px\" \/><\/figure>\n<p>The documents indicate that Jean\u2011Louis van der Velde was CEO of Tether Ltd, Potter served as a director and Devasini was a major shareholder. Ron Torossian, a representative of Tether and Bitfinex, acknowledged the link between the companies.<\/p>\n<p>In early 2019 the New York attorney-general brought charges against iFinex Inc., alleging that Bitfinex concealed the use of Tether Limited\u2019s capital to compensate for a loss of funds that occurred during the transfer of $850m to the Panamanian processing service Crypto Capital. The assets belonged to the company and its clients.<\/p>\n<p>In early 2021 Bitfinex <a href=\"https:\/\/forklog.com\/en\/news\/bitfinex-repaid-a-750-million-loan-taken-from-tether\">repaid<\/a> the principal debt to Tether and <a href=\"https:\/\/forklog.com\/en\/news\/bitfinex-and-tether-to-pay-new-york-state-18-5-million-in-settlement-over-financial-operations\">settled<\/a> the dispute with the authorities. Investors nonetheless filed a class action against the stablecoin issuer, accusing it of improper conduct.<\/p>\n<p>In 2022 one of the defendants in the Crypto Capital case pleaded guilty to \u201cshadow banking\u201d. The company\u2019s founder remains at large.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">What services does Bitfinex provide?<\/h2>\n<p>Bitfinex.com offers spot and margin trading in digital assets, <a href=\"https:\/\/forklog.com\/en\/news\/what-are-crypto-derivatives-and-how-do-traders-profit-from-them\">derivatives<\/a>, margin funding, an OTC option, as well as a virtual paper-trading account.<\/p>\n<p>The platform\u2019s ecosystem includes:<\/p>\n<ul class=\"wp-block-list\">\n<li>the Bitfinex mobile app, available for devices on <a href=\"https:\/\/itunes.apple.com\/us\/app\/bitfinex\/id1436383182?ls=1&#038;mt=8\" target=\"_blank\" rel=\"noreferrer noopener\">iOS<\/a> and <a href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.bitfinex.mobileapp&#038;hl=en\" target=\"_blank\" rel=\"noreferrer noopener\">Android<\/a>;<\/li>\n<li><a href=\"https:\/\/lending-pro.bitfinex.com\/landing\" target=\"_blank\" rel=\"noreferrer noopener\">Lending Pro<\/a> \u2014 a customisable tool with advanced features for margin trades;<\/li>\n<li>the P2P lending platform <a href=\"https:\/\/www.bitfinex.com\/borrow\" target=\"_blank\" rel=\"noreferrer noopener\">Bitfinex Borrow<\/a>, where loans in bitcoin and other cryptocurrencies can be made and taken. Digital assets are used as collateral, including Bitfinex\u2019s utility token UNUS SED LEO (LEO);<\/li>\n<li><a href=\"https:\/\/pay.bitfinex.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Bitfinex Pay<\/a> \u2014 a service that enables acceptance of cryptocurrency payments;<\/li>\n<li><a href=\"https:\/\/bfx-ui-terminal.staging.bitfinex.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Bitfinex Terminal<\/a> \u2014 a real-time market-data terminal that runs over the Dazaar network;<\/li>\n<li><a href=\"https:\/\/honey.bitfinex.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Bitfinex Honey Framework<\/a> \u2014 a suite of tools for programmable trading. It is a library of algorithmic orders that enables complex trades via Bitfinex and the creation of trading bots.<\/li>\n<\/ul>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">What is UNUS SED LEO (LEO)?<\/h2>\n<p>In 2019 Bitfinex published the <a href=\"https:\/\/www.bitfinex.com\/wp-2019-05.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">whitepaper<\/a> for the UNUS SED LEO (LEO) token. The venue raised more than $1bn via an <a href=\"https:\/\/forklog.com\/en\/news\/what-is-an-initial-exchange-offering-ieo-and-how-does-it-differ-from-an-ico\">IEO<\/a> and covered the $850m shortfall arising from the Crypto Capital situation.<\/p>\n<p>LEO is the utility token underpinning the Bitfinex ecosystem. Holders receive 15\u201325% discounts on trading fees, as well as additional <a href=\"https:\/\/support.bitfinex.com\/hc\/ru\/articles\/900000064023-%D0%9F%D1%80%D0%B5%D0%B8%D0%BC%D1%83%D1%89%D0%B5%D1%81%D1%82%D0%B2%D0%B0-%D0%B4%D0%B5%D1%80%D0%B6%D0%B0%D1%82%D0%B5%D0%BB%D0%B5%D0%B9-%D1%82%D0%BE%D0%BA%D0%B5%D0%BD%D0%BE%D0%B2-UNUS-SED-LEO\" target=\"_blank\" rel=\"noreferrer noopener\">bonuses<\/a>: more favourable margin-lending terms, deposit and withdrawal conditions, and an enhanced affiliate programme.<\/p>\n<p>The same year Bitfinex announced a burn mechanism. To that end iFinex conducts token buy-backs from the market. The process can be tracked <a href=\"https:\/\/leo.bitfinex.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">on the website<\/a> in real time.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">What is known about the biggest Bitfinex hack?<\/h2>\n<p>The platform has suffered multiple breaches. One of the largest occurred in August 2016, when hackers stole 120,000 BTC.<\/p>\n<p>Bitfinex used multi-sig wallets. One private key was managed by BitGo, and two others by Bitfinex. The platform\u2019s API key was compromised.<\/p>\n<p>As a result of the attack more than 36% of users\u2019 assets were stolen. The platform issued the BFX token, granting clients the right to potential reimbursement of unauthorised withdrawals. The measure helped the company weather the breach.<\/p>\n<p>Bitfinex bought back the tokens at 1 BFX:$1, or converted them into shares of parent iFinex Inc. Users who converted BFX into securities received RRT tokens.<\/p>\n<p>In 2017 the exchange announced the redemption of BFX tokens and full settlement with all clients affected by the theft.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">Who was behind the 2016 Bitfinex hack?<\/h2>\n<p>Immediately after the incident the Bitfinex team offered a reward of up to $3.6m for help in finding the stolen digital assets.<\/p>\n<p>Only in 2022 did US authorities detain those involved in the hack. They turned out to be a married couple \u2014 Ilya Lichtenstein and Heather Morgan. They were found thanks to the shutdown of the <a href=\"https:\/\/forklog.com\/en\/news\/what-is-the-darknet-what-is-tor\">darknet market<\/a> AlphaBay.<\/p>\n<p>The US Department of Justice said it was the largest seizure of digital assets in the department\u2019s history \u2014 94,636 BTC ($3.6bn).<\/p>\n<p>If convicted, the pair faces up to 25 years in prison. In February Morgan was released on $3m bond. Lichtenstein remained in custody.<\/p>\n<p>The trading platform aims to recover the seized cryptocurrency, co-operating with US authorities. If the digital assets are returned to the exchange, the company is obliged, within 18 months, to use 80% of the amount received to buy back and burn LEO tokens.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">Further reading<\/h2>\n<p><a href=\"https:\/\/forklog.com\/en\/news\/what-is-binance\">What is Binance?<\/a><\/p>\n<p><a href=\"https:\/\/forklog.com\/en\/news\/what-is-coinbase\">What is Coinbase?<\/a><\/p>\n<p><a href=\"https:\/\/forklog.com\/en\/news\/what-is-whitebit\">What is WhiteBIT?<\/a><\/p>\n<p>What are stablecoins?<\/p>\n<p><a href=\"https:\/\/forklog.com\/en\/news\/who-is-sam-bankman-fried\">Who is Sam Bankman-Fried?<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>When did Bitfinex launch? Who founded it? Who was involved in the platform\u2019s biggest hack, in 2016? Explained in cards.<\/p>\n","protected":false},"author":1,"featured_media":37673,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"2","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[2113],"tags":[2118,95,1166,1245],"class_list":["post-37672","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptorium","tag-101-trading-and-investing","tag-bitfinex","tag-centralized-exchanges-cex","tag-tether-usdt"],"aioseo_notices":[],"amp_enabled":true,"views":"155","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/37672","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=37672"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/37672\/revisions"}],"predecessor-version":[{"id":37674,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/37672\/revisions\/37674"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/37673"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=37672"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=37672"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=37672"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}