- Research suggests nearly 100% of El salvador‘s 6,114 Bitcoin reserves originate from Bitfinex, raising questions about who truly controls these assets.
- The IMF’s recent $1.4 billion loan agreement requires El Salvador to provide extensive details about its bitcoin purchases and restricts future acquisitions.
- Tether and Bitfinex have established significant business ties in El Salvador, including relocating headquarters and executives purchasing local real estate.
Questions are mounting over who truly controls El Salvador’s bitcoin holdings after researchers traced the digital assets to cryptocurrency exchange Bitfinex. According to an investigation published in El Diario de Hoy and republished on ElSalvador.com, nearly all of the bitcoin listed on El Salvador’s sovereign balance sheet can be traced back to Bitfinex-controlled wallets.
The investigation, which Bitnewsbot.com has not independently verified, raises serious concerns about the true ownership of the 6,114.18 bitcoin that President Nayib Bukele’s administration claims to hold. Researcher Mario Gómez speculates that Bitfinex may be helping Bukele create the appearance of bitcoin ownership for assets that are actually donated, loaned, or ultimately controlled by the exchange.
El Salvador maintains an official website documenting its bitcoin holdings, a figure also tracked by third-party site Nayib Tracker. However, these platforms only show balances in specific addresses without revealing critical information about the origin of the funds, potential encumbrances, or who possesses the private keys controlling these assets.
When researchers examined the transaction history of the bitcoins held in El Salvador’s wallet, they discovered approximately 80% came directly from Bitfinex-controlled wallets. The remaining 20% reportedly moved through the government’s Chivo Wallet but ultimately originated from Bitfinex as well, with a negligible amount traced to Binance.
The findings add another layer to the already substantial relationship between El Salvador and Bitfinex’s corporate ecosystem. The Bukele administration has previously used Bitfinex for its bitcoin dollar cost averaging purchases and initial acquisitions. Bitfinex and sister company Tether have received digital asset service provider licenses in the country and facilitated various financial products including Bitcoin bonds, Volcano Energy financing, and tokenized securities.
Tether has even relocated its headquarters to El Salvador, with executives Paolo Ardoino, Claudia Lagorio, and Giancarlo Devasini purchasing real estate in the country—further cementing the close business relationship.
The controversy comes at a pivotal time as El Salvador recently signed an agreement with the International Monetary Fund (IMF) for a $1.4 billion loan package. As part of this deal, Bukele has committed to providing comprehensive details about the government’s bitcoin purchases, revoking bitcoin’s status as legal tender in the country, and limiting further acquisitions.
The IMF agreement may eventually provide clarity regarding the true nature of El Salvador’s bitcoin holdings, including any undisclosed funding arrangements or limitations on their use. Until then, questions remain about whether these digital assets represent genuine sovereign reserves or something more complex.
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