More Troubles Brewing for Bitfinex after Socializing Losses?

More Troubles Brewing for Bitfinex after Socializing Losses?

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....


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Bitfinex Users to Bear a Generalized Loss Percentage

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....

Here’s Why Bitfinex is Not Like MtGox

Hong Kong’s lack of insolvency protection for companies makes a fate similar to MtGox more likely. Creditors, not Bitfinex, are the ones who get to decide whether to socialize losses. Socialized Losses? Not So Fast. Bitfinex, a bitcoin exchange based in Hong Kong, was hacked last week and suffered a loss of roughly $70M USD. The company appears insolvent....

Bitfinex Users to Lose 36%

Following the theft of ~$70Mn worth of bitcoins on 2nd August, Bitfinex has calculated how much each customer would stand to lose: 36%. Arriving at Assets of Each Customer. Bitfinex has cancelled all withdrawals, open orders and open funding offers. All financed positions were settled based on a published settlement price. Post this, the asset position of each customer has been finalized. Accounting complete. Bitfinex has finalized accounting for the losses incurred. After consultation, it has arrived at the conclusion that losses must be generalized across all accounts and assets. Each....

Loss of Bitcoins in Bitfinex Could be Deducted on US Tax Returns

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.....

Industry Report: Bitfinex Forces Customers to Pay for Hack Losses

Another Silk Road auction is taking place, Bitfinex is covering its losses, and a new class on Bitcoin is set to begin. Want to catch up on your latest digital currency news? Take a look at the stories below. BITFINEX UPDATE. Following a massive cyber-hack that took place last week, Hong Kong-based exchange Bitfinex has announced it will cover its losses at the expense of its users, leaving many people unhappy. Executives have explained that users will share up to 36 percent of the company’s losses after nearly $72 million dollars were stolen in one of the largest bitcoin thefts in....