Bitfinex Bitcoin Traders to Pay the Price, Loss Spread to All Users
The Hong Kong-based exchange announced today that it is considering making all of its bitcoin traders pay the price after the theft of $68 million worth of bitcoin, earlier this week. In a Bitfinex blog post it said that the company was expecting to ‘socialize’ the loss among its bitcoin users even those who weren’t originally affected. The blog said: We are still working out the details so nothing is set in stone, however we are leaning towards a socialized loss scenario among bitcoin balances and active loans to BTCUSD positions. The theft of the 119,756 bitcoins means that this is the....
Related News
After losing nearly US$70 million worth of Bitcoin in a sophisticated cyber attack, Hong Kong-based exchange Bitfinex is considering spreading the loss amongst Bitcoin holders in the exchange. In a blog post on August 5, Bitfinex told its users and customers about the possibility of “socialized loss scenario,” in which active loans to BTC/USD positions and Bitcoin balances may be used to settle the theft. However, Bitfinex reassured its users that the numbers presented or quoted on social media and by the media are “erroneous,” hinting that the actual loss—after the final settlement of....
Following the hack at Bitfinex, many people stand to lose money as the company spreads losses among users. A 36% haircut was announced, but some users claimed even bigger losses. American tax accountant Daniel Winters explains how the IRS could allow U.S. taxpayers to deduct their losses from the Bitfinex hack. Tax Deduction for Bitfinex Hack Victims.....
Bitfinex may have legal troubles coming their way after socializing losses. It seems like Bitfinex has more to worry about than just the loss of 119,756 bitcoins to hackers. The platform recently announced that it will be generalizing the losses across all users. According to the exchange’s calculations, the generalized loss percentage is set at 36.067 percent. Meaning, all Bitfinex users will be contributing more than a quarter of their digital currency holding so that the ones who lost can be reasonably compensated at the moment. In return, the platform will be offering BFX tokens to....
Bitfinex has confirmed that it is going to generalize the losses incurred from the hacking incident across its user base. Bitfinex, the recently compromised cryptocurrency exchange has confirmed that it will be generalizing the Bitcoin losses across all its customers. A generalized loss percentage of 36.067% will be borne by all Bitfinex users, states the company’s latest status update. The possibility of Bitfinex socializing its losses came up yesterday after the company mentioned it on its blog. While it was just a consideration at that time, today’s update on the platform’s status page....
As it tries to mitigate the effects of last week’s theft of nearly $68 million, Hong Kong exchange Bitfinex has announced it may make all Bitcoin traders using its service pay the price. ‘Socialized Loss Scenario’ for Bitcoin Traders. In a blog post today, the exchange said it was “leaning towards” evenly distributing the loss of 119,756 BTC among its....