Bitfinex’s cold wallet balances deplete rapidly; are users pulling out of Bitfinex?

Bitfinex and Tether’s lawsuit resulted in revelations that could have a massive impact on the crypto-community. More information seems to be coming to light. The cold wallet balances of Bitfinex are depleting rapidly as pointed out by Mati Greenspan, a senior market analyst at eToro and a Bitcoin Maximalist.

Greenspan pointed out the aforementioned in his tweet as he stated:

“Here’s one of the cold wallets known to belong to @bitfinex. As you can see the balance has dropped from 119k BTC on April 26th to 89k BTC at the moment. Are people pulling out?”

Source: Twitter | Mati Greenspan

The image above shows the decreasing trend in Bitfinex’s cold wallet balances. Its Bitcoin balances took two major hits, the first one was on February 2018, and the second one, in the month of April.

After news about NYAG’s lawsuit broke, the balance has seen a drastic decrease; at press time, 119,538 BTCs to 89,405 BTCs.

Source: Etherescan

Greenspan added:

“Here’s an Ethereum wallet. Same story. Balance has dropped from 2.1 million ETH to 1.1 million ETH in the last week… I just tried making a withdrawal but it looks like I’m blocked. Note: Didn’t change my password recently.”

The speculation surrounding the reduction in Bitfinex’s cold wallet balances is that users are panicking and emptying their wallets, however, the claim is not confirmed yet.

In addition, Token Analyst tweeted about Bitcoin’s inflow and outflow across popular exchanges.

A Twitter user @Buda_CSB commented:

“The bleed seems to be stopping. And a good recourse bitfinex has is the p2p margin funding market. Yields adapt and will bring liquidity.”

Another Twitter user @AndreiTabirca added:

“I would pull out. There are plenty other exchanges. Bitfinex was never one of my favorites.”

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