Bitfinex betrayed customers' trust, traders withdrew nearly $600 M in five days

• The cryptocurrency exchange experiece strong outflows.
• It is said to consider IEO ot raise $1B.

About $585 million flew out of Bitfinex, BitMEX Research experts concluded based on the analysis made with TokenAnalyst tools. 

“According to data from @thetokenanalyst, in the last 5 days, the net @bitfinex onchain outflow from Bitcoin & Ethereum is US$585m. Although to be fair, as the chart shows, apart from 26th April, outflow growth since the NYAG news looks moderate,” the company wrote in its Twitter account.  

The experts noted that the exchange users chose to withdraw their Bitcoins and Ethereum coins. The peak of the withdrawals was registered on April 26, following the news that the exchange covered  $850 million of losses with Tether. While the outflow has slowed since that time, traders continue taking their money from the exchange. Thus, experts emphasised that in recent 24 hours the outflow of funds was twice as big as inflow.  

In a separate development, Dovey Wan from Primitive Ventures noted that the cryptocurrency exchange Bitfinex might issue its own token via Initial Exchange Offering (IEO) with the aim to raise investments in the amount of $1 billion.  

“Folks are selling the allocation of its IEO in a few channels, i was super skeptical at first but later confirmed by of one of BFX equity share holders,” Dovey Wan wrote in Twitter, noting that the news was confirmed by one of BFX investors. 

Also, a Twitter user Zirui published the same news, citing BitFinex investor Zhao Dong 

“According to @zhaodong1982 there’s a high possibility that @bitfinex is going to do an IEO, and some big whales already reserved $300m of the allocations in #USDT“