Bitfinex
exchangeBitfinex is a global exchange founded in 2012 with 99.5% cold storage; it suffered a 119,756 BTC theft in 2016, with around 80% subsequently recovered.
Platform Information
Founded
Headquarters
Two-Factor Authentication
An extra login step that protects your account even if your password is stolen.
Custodial
The platform holds your crypto on your behalf — you don't control the private keys.
KYC Required
Know Your Customer — you must verify your identity before trading or withdrawing.
Proof of Reserves
The platform publicly proves it holds enough assets to cover all customer funds.
Insurance
Customer funds are covered by insurance in the event of a hack or platform failure.
Supported Chains
About Bitfinex
Bitfinex is a centralized cryptocurrency exchange founded in 2012 and operated by iFinex Inc., a British Virgin Islands company that also owns Tether Limited, the issuer of the USDT stablecoin. The platform supports over 350 trading markets including spot, margin, perpetual futures, and OTC trading, targeting advanced and institutional users. As of December 2025, the exchange removed all maker and taker trading fees across all market types.
Security
- Approximately 99.5% of user assets stored in offline cold storage
- Multisignature wallet architecture requiring multiple key approvals for withdrawals
- Two-factor authentication via TOTP apps and U2F hardware security keys
- Withdrawal address whitelisting to limit transfers to pre-approved destinations
- IP monitoring and DDoS protection at the platform level
- Custodial exchange: iFinex controls private keys on behalf of users
Regulation
- Not regulated by major Tier-1 financial authorities such as the FCA, FinCEN, SEC, or MAS
- Incorporated in the British Virgin Islands
- Holds a Digital Asset Service Provider (DASP) licence in El Salvador (issued 2023)
- Bitfinex Derivatives holds a separate licence from El Salvador's National Digital Asset Commission (January 2025)
- Holds a licence under the Astana International Financial Centre (AIFC) in Kazakhstan
- Residents of the US, UK, Canada, Spain, and sanctioned territories are prohibited from accessing the platform
Incident History
- August 2, 2016: Attackers exploited a flaw in Bitfinex's multisignature withdrawal system, stealing 119,756 BTC (approximately $72 million at the time). All user balances were cut by 36%; affected users received BFX debt tokens, which Bitfinex subsequently redeemed at par.
- In February 2022, US authorities arrested Ilya Lichtenstein and Heather Morgan after locating encrypted files containing private keys for the stolen assets.
- In November 2024, Lichtenstein was sentenced to 5 years in prison and Morgan to 18 months. Approximately 80% of the stolen BTC — valued at over $10 billion at time of recovery — was returned to Bitfinex.
- Bitfinex publishes Proof of Reserves on GitHub for independent verification of user balance coverage.
Availability
Bitfinex operates in over 180 countries but explicitly restricts access for residents of the United States, United Kingdom, Canada, Spain, and sanctioned territories.
Security & Score
Platform Safety Score
Based on incident history, security features, and track record
Security Features
Regulatory Information
Regulated In
Jurisdictions where this platform is officially licensed and subject to financial oversight.
Area Served
Countries or regions where this platform is available to users.
Notes
Holds a Digital Asset Service Provider (DASP) licence in El Salvador and a licence under the Astana International Financial Centre (AIFC) in Kazakhstan. US and Canadian users are prohibited.
Incident History
No incidents recorded for this platform.
Frequently Asked Questions
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