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Definition: Bitfinex

A centralized cryptocurrency exchange founded in 2012 by iFinex Inc. and based in the British Virgin Islands. In 2017, Bitfinex launched Ethfinex, a decentralized exchange (DeX), which was later rebranded as DiversiFi. Bitfinex is not available to U.S. customers.

By 2018, Bitfinex accounted for roughly 12% of the Bitcoin market, and support for Bitcoin's Lightning Network was added a year later. According to the Statista website, in March 2022, Bitfinex ranked 39th in exchange daily volume.

Connections to DiversiFi and Polygon
In 2021, a bridge between Bitfinex and DiversiFi was developed, making DiversiFi a hub for Bitfinex traders to access DeFi opportunities. A bridge between DiversiFi and Polygon blockchains was also created. See Polygon blockchain.

A Few Blips Along the Way
In 2016, $72 million was stolen from random wallets. In response, Bitfinex reduced all their customers' wallet holdings by 36% to distribute the loss among all users along with BFX tokens to compensate for the losses. The tokens were later bought back for $1 each.

In 2021, iFinex paid an $18.5 million settlement to New York State regarding money movement between Bitfinex and closely associated Tether Limited, the creator of the Tether stablecoin. See Bitcoin, Lightning Network and crypto glossary.