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 Blip Along the Way
In 2016, $72 million in Bitcoin 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 because by 2022, law enforcement had recouped about 80% of the funds. Husband and wife Ilya Lichtenstein and Heather Morgan were arrested for the crime, and in November 2024, Lichtenstein was sentenced to five years in prison with Morgan's sentence pending. See
Bitcoin,
Lightning Network and
crypto glossary.