Bitfinex Hires Law Firm to Challenge Critics

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Bitfinex has hired the law firm of Steptoe & Johnson and is threatening legal action against a pseudonymous blogger who it says have made false claims about the bitcoin exchange.

In a statement, Bitfinex said it hired Steptoe to respond to such claims with "appropriate action," including "possible litigation" against "various parties." Jason Weinstein, who leads the blockchain practice at Steptoe, confirmed its hiring by Bitfinex in an email.

Stuart Hoegner, the in-house counsel for Bitfinex, said in the statement:

"To date, every claim made by these bad actors has been patently false and made simply to agitate the cryptocurrency ecosystem. As a result, Bitfinex has decided to assert all of its legal rights and remedies against this agitator and his associates."

The move aligns the world's largest bitcoin exchange – a company mired in controversy and shrouded in secrecy – with one of the most prominent law firms in the digital currency space.

Based in Washington, D.C., Steptoe is the counsel for the Blockchain Alliance, a public-private forum created two years ago to exchange information between the industry and law enforcement in the service of fighting crime.

Reached by email Monday, the blogger, who uses the handle Bitfinex'ed, said the exchange has "knowingly filed frivolous lawsuits in the past which they had no intent on completing," and cited as an example Bitfinex's lawsuit against Wells Fargo, which was withdrawn in April.

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