Bitfinex Introduces The BFXCoin IOU And Scalps User Balances by 36%
In the end, the announcement of BFXCoin will not do much for users. This is nothing more than a digital IOU, with a promise by Bitfinex to repay customers. The recent Bitfinex hack has caused a lot of confusion among cryptocurrency enthusiasts, and will continue to do for the time being. However, it also became apparent the company will penalize all of its users to recover the losses somehow. Moreover, the exchange will issue its own coin which acts as an IOU. When Bitfinex got hacked, the Bitcoin community was greeted with yet another shock. As a result, the price per Bitcoin started to....
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Cryptocurrency trading platform Bitfinex experienced an embarrassing issue last night/earlier today that leaked non-identifying user information to other clients using the platform. User reports indicate that upon viewing the order book, another user's account may have been listen in addition to their balances. You can view a thread discussing this very issue on Reddit.com here. That thread reads [in part]: Just a heads up, there doesn't seem to be any immediate threat of stolen coins, but if you log in to BFX and click on the orderbook you may see someone else's account listed with their....
More importantly, the question becomes what this investigation means for Bitfinex as a company, and their “legal gray area” shenanigans. It was only a matter of time until Bitfinex would get into legal trouble over their recent hack. One user in Massachusetts has filed a police report to recover his missing bitcoin funds. During the hack, nearly US$70m worth of Bitcoin were stolen, and no users were compensated. Instead, they all saw their balances punished even further to make up for the balance sheet losses. The way Bitfinex handled the whole hacking event was not exactly professional,....
Bitfinex has become the first major bitcoin exchange to offer on-blockchain transactions. Typically, exchanges work off-chain, meaning that user balances are settled within a central database. Bitfinex's bid for greater transparency will allow users to check their segregated bitcoin wallets on the blockchain. Trade settlements will be broadcast once per day, according to the company. Zane Tackett, director of community and product development at Bitfinex, said:
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....
South Korean bitcoin exchange Yapizon was hacked earlier this week, losing more than US$5 million worth of user funds and bitcoin. According to the exchange’s official statement translated by CCN, four hot wallets of the exchange were hacked by an unknown group of hackers. The Yapizon legal team noted that approximately 37 percent of user funds were hacked and exactly 3,816 bitcoins were stolen from the exchange. Users of Yapizon outraged over the exchange’s decision to spread losses from the theft equally amongst all bitcoin accounts. Considering that the exchange lost 37 percent of its....