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....
Related News
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 customers may soon have a way to convert the digital assets they were issued following the exchange's decision to socialize losses into equity in the company. Weeks after a debilitating hack, Bitfinex has signed a letter of intent with UK investment platform BnkToTheFuture that finds the two firms collaborating to enable the redemption of BFX tokens for equity in iFinex Inc, its British Virgin Islands-based parent company. Introduced when the exchange came back online on 11th August, BFX tokens are meant to make up for the 36% customer losses imposed after the incident. Issued to....
Matt Levine, a former investment banker and mergers and acquisitions lawyer, sees the Bitfinex “bail-in” as an early step in bitcoin’s attempt to address unexpected financial fallouts. Writing in his “Money Stuff” column for Bloomberg, he noted there will be more such crises to come, and he is hopeful bitcoin/blockchain will be able to come up with solutions. He thinks that the innovation in the bitcoin/blockchain financial system taking place could give direction to more traditional finance. Bitfinex Hack Was Unique. Levine noted that Bitfinex, which suffered a $71 million hacking attack,....
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.....
On August 2, 2016, it has been reported that the major cryptocurrency exchange, Bitfinex, was hacked with some customers losing Bitcoin as a result. Additionally, BitGo has commented on the event. The Breach of Bitfinex. Bitfinex itself confirmed the hack in a press release earlier today, saying they have halted all trading on the platform. Additionally, all deposits to and withdrawals from Bitfinex have been temporarily stopped. The exchange does not have much information about the hack, but the press release confirmed that customers of the exchange have lost Bitcoin following the breach.....