In recent weeks, Bitfinex's banking relationships have been at the top of mind for many market observers in crypto. As The Block previously reported, Bitfinex and Tether are currently holding at least a portion of their funds at Deltec Bank and processing deposits through Bank of Communications via a private account of a shell company. Bitfinex previously banked with Noble Bank, but that relationship ended over the summer. As The Block previously reported, the firm banked briefly with HSBC. To be sure, Bitfinex isn't the only crypto exchange to draw criticism from the market. As bitcoin soared to $20,000 at the end of 2018, exchanges such as Kraken and Coinbase reported numerous outages in which customers couldn't trade coins.
The volatility and scandals that have gripped the cryptocurrency markets has kept many large investors from trading coins themselves. Still, many financial-services firms offer banking services for cryptocurrency exchanges. Below, The Block outlines the banking partners of some of the largest cryptocurrency exchanges and brokers, including Coinbase and Bitfinex. Our findings suggest that Bitfinex is the only significant firm that opens accounts using alternatives names.
With contributions from Frank Chaparro.