Who is Actually Behind El Salvador’s Bitcoin Holdings?

Recent reports suggest that El Salvador’s 6,114 BTC, claimed by the government, may actually be controlled by the crypto exchange Bitfinex.

Investigations point to over 80% of the Bitcoin being linked to Bitfinex wallets, with some funds routed through Chivo Wallet. This raises questions about whether El Salvador is misrepresenting its Bitcoin holdings, with researcher Mario Gómez speculating that the funds could have been loaned or donated by Bitfinex, rather than directly owned by the government.

El Salvador’s close ties to Bitfinex and its sister company Tether are well known, as the government has worked with them on various projects, including Bitcoin purchases and crypto-related services.

As part of a deal with the IMF, El Salvador has agreed to disclose more details about its Bitcoin holdings, which may provide further clarity on the situation. However, for now, the true control of the country’s Bitcoin remains unclear.

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These revelations come amid ongoing scrutiny over El Salvador’s controversial Bitcoin adoption. The government’s push to integrate Bitcoin as legal tender has faced both local and international skepticism.

While Bukele’s administration touts the move as a financial revolution, critics argue that the government’s reliance on external entities like Bitfinex and Tether complicates the narrative, potentially undermining the sovereignty of El Salvador’s crypto assets. The IMF agreement is seen as an opportunity to address some of these concerns and provide transparency on the country’s Bitcoin strategy moving forward.

Alexander Zdravkov