Earlier today, we were contacted by Frank Chaparro of The Block seeking comment on a story about an unnamed person opening a Bitfinex account from New York and then withdrawing digital tokens from that account.
We have now identified this user. We correctly flagged this user’s IP address as being in the U.S. Notwithstanding the U.S. IP address — which may be used by Bitfinex customers, as appropriate — our system logs demonstrate that this user represented to us several times that he was not an individual resident in the U.S. This person has lied to Bitfinex on multiple occasions, deliberately and wrongly concealed his location, and flagrantly violated our terms of service.
We think it’s unfortunate that Mr. Chaparro would rather associate himself with these actions than actively attempt to help us uncover and punish fraudulent behaviour on our platform. This kind of ‘gotcha’ sting also speaks volumes about his and our other detractors’ true motivations.
We have disabled the account involved in this case. We reserve the right to report this and other fraudulent behaviours to appropriate authorities. Finally, we remind United States persons that they are not welcome on our platform and that we will continue to take action to enforce our rights and fulfill our legal obligations.