Bitfinex is known for having a pretty strict KYC process and asking for a lot of information from his clients. The exchange has recently sent emails to its clients demanding more identity information.
“That means we are in contact with our customers continuously. We may, for example, be updating various KYC documents that have expired, or clarifying the nature of certain transactions,”
Bitfinex Chief Technology Officer Paolo Ardoino said.
More specifically, the email asks verified clients to share details on the source of their funds as well as proof of residential address.
While we do allow unverified customers on our platform to engage in limited trading activities, we always work to ensure that all customers – both verified and unverified – are respecting the same ground rules.
Told Paolo Ardoino to ‘The Block’
The Controversy Surrounding Bitfinex
Many people have complained about an abusive KYC process by Bitfinex in the past. A Reddit user recently wrote a post stating that his $300,000 funds in crypto were frozen and that he was asked to provide information about where the funds came from, how is he using them and more.
Bitfinex has also been under a lot of criticism due to Tether Stablecoin (USDT). The company behind Tether has failed to provide an audit showing adequate reserves backing the stablecoin. Bitfinex shares a parent company with Tether and was accused by the New York Attorney General of using the stablecoin to cover up to $850 million in funds missing since mid-2018.