By ALEX JONES and RICHARD GUTIERREZMANICOBy ALEXJONES,RICHARDGUTIERRES and ARNOLD GUTERREZThe world’s largest bitcoin exchange, Bitfinext, has avoided the worst of the cryptocurrency downturn and the fallout from its $1.4 billion loss to rivals Gemini and Bitstamp.
The company is not going out of business and is operating as it was at the start of the year, CEO Rob Popp said in an interview.
The firm’s value is about $600m, which has grown by about 20pc since the start, Popp told CNBC’s “Squawk Box” in an exclusive interview.
It has survived a series of scandals that have seen bitcoin prices plunge and led to the bankruptcy of two of its biggest competitors, Gemini and Bithumb, as well as a wave of new entrants.
The crisis also led to a surge in bitcoin trading volumes and a sharp rise in the value of the currency, which spiked above $7,000 before the financial crisis erupted.
Bitfinext has raised a further $1 billion in funding to fund operations, and is expected to close its IPO later this month.
The $1bn will be used to continue operating the exchange as it does now, Poppy said.
The firm will not raise any new capital, and will continue to operate its business as it has done so far.
The bank is one of several bitcoin exchanges that has been hit hard by the crypto-market’s collapse.
A number of large and small businesses have also announced that they will stop trading bitcoin or have their customers shut out.
While bitcoin’s value has remained strong, the exchange is not immune to the market turmoil, with some companies suspending operations.
Bitstamp is the most well-known example of the exchanges collapse, which is due to the collapse of MtGox, a bitcoin exchange operated by MtGX, the largest bitcoin trading platform in the world.
The exchange was shut down last week, and the MtGx wallet has since been wiped off the exchange’s website.
Its collapse has also been blamed on a hacking attack against its customers and users, as the price of bitcoin fell to as low as $3,500.
It is the first major bitcoin exchange to shut down following the collapse.
MtGox was shut in October 2016 after the exchange was hacked by a group of hackers claiming to be a group calling itself the Lazarus Group.
Its owners are currently in the US on trial for money laundering, money laundering and money laundering conspiracy.
Bitcoins value is currently around $5,500, which would make it the second-most valuable asset on the bitcoin exchange market after the dollar.
It remains unclear how much Bitfinexy will recover, Poppa said.
Bitrex, the second largest bitcoin currency exchange, has also announced its bankruptcy and will be liquidated.
The loss of Bitfinexe could be a significant blow to the broader bitcoin industry, with its operations having been the backbone of the bitcoin ecosystem.
But Popp has no immediate plans to close Bitfinexes operations.
He has said that it would be best for the exchange to stay open and keep its users on the platform.
“We will not shut down, we will continue operating as is,” Popp was quoted as saying by the New York Times.