[2016-11-03]Hacked Bitcoin Exchange Bitfinex Swaps Over 20 Million Tokens For ..

[WishICanTurnBackTime]

Hacked Bitcoin Exchange Bitfinex Swaps Over 20 Million Tokens For Equity

Bitfinex has announced that many of its largest BFX token holders have agreed to exchange over 20 million BFX tokens for equity in the company, marking a step in its recovery following the August theft of approximately 119,756 bitcoins valued at more than $70 million. The equity consists of shares of Bitfinex’s owner, iFinex Inc.

“This is a significant step towards the recovery and stabilization of our company,” said Philip Potter, the company’s chief strategy officer. “

https://www.cryptocoinsnews.com/hacked-bitcoin-exchange-bitfinex-exchanges-over-20-million-tokens-for-equity/

[yayayo]

Good for Bitfinex, not so good for its creditors. I doubt it's a good investment or that any of the victims will receive significant compensation for his/her losses. The desperate attempt of Bitfinex to contact the hacker to give back the funds against "clean" money underlines this. Most victims seem to have already given up and accept equity, to get at least anything.

It's indirectly a forced increase of capital at favorable conditions for Bitfinex. The exchange is almost worthless, given the outstanding obligations and the huge loss in confidence that destroyed its dominant market position.

I'm still waiting for the results of the criminal investigations.

ya.ya.yo!

[richardsNY]

Great.... Not! People agreeing to have a certain stake in a company where they are messing up severely with more than $85 million worth of coins (at current price) being stolen from one of their owned companies, are making a wrong decision. Bitfinex, and directly its main company can't be trusted. So from that side I can't understand why people would be willing to exchange their tokens for a stake in a shitty company. It's probably because people are desperate to recover their money.

[veleten]

crazy people....
it is like bying stocks in a closing venture
how on earth Bitfinex is planning to pay the rest of its debts?
will they ever recover even 1/10 of their market share?

[TraderTimm]

I still find it amazing that Bitfinex can offer investors a shit sandwich and some will actually take it and eat it.

Bitfinex is a company that has no redundancy plan, no disaster recovery plan, and no clear leadership in times of crisis -- other than a PR mouthpiece that does fuckall to alleviate concerns, and a reclusive CEO that is too busy counting his money to give two shits about the people using his service.

The clock is ticking, however. With the worlds largest futures exchange getting involved in the Bitcoin space, the CME listing two index products will cause institutional investing to increase -- which will leave silly clowncar exchanges like BFX in the dust.

It can't happen too fast, because BFX is another accident waiting to happen. Trusting these people with your money is likely the largest mistake you could ever make trading cryptocurrencies.