Bitcoin Forum
February 02, 2023, 02:39:26 AM *
News: Latest Bitcoin Core release: 24.0.1 [Torrent]
 
   Home   Help Search Login Register More  
Pages: « 1 [2]  All
  Print  
Author Topic: Bitfinex legal obligations to users  (Read 2710 times)
illyiller
Hero Member
*****
Offline Offline

Activity: 697
Merit: 520



View Profile
August 19, 2016, 06:48:10 AM
 #21

They are trying to avoid prosecution by the SEC with a rule that U.S. people can only sell BFX tokens, but they cannot buy BFX tokens. Bitfinex will argue that they aren't allowing US people to trade them because they can't buy and sell them. I don't think that strategy will work, the SEC will probably prosecute them anyway.

I'm pretty sure that strategy will blow up their face. The point of contention, I'm fairly sure, is the issuance of the unregistered securities. These are pretty clearly some kind of bond (whether convertible or not), so I can't imagine a sound legal argument that they aren't securities (at least under US law). I'm guessing the SEC will eventually come down on them (perhaps even shut them down), but US agencies take months and months to build a case and act.
1675305566
Hero Member
*
Offline Offline

Posts: 1675305566

View Profile Personal Message (Offline)

Ignore
1675305566
Reply with quote  #2

1675305566
Report to moderator
"You Asked For Change, We Gave You Coins" -- casascius
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction.
1675305566
Hero Member
*
Offline Offline

Posts: 1675305566

View Profile Personal Message (Offline)

Ignore
1675305566
Reply with quote  #2

1675305566
Report to moderator
Das
Sr. Member
****
Offline Offline

Activity: 308
Merit: 250


Borderless Mobile Finance Marketplace


View Profile
August 31, 2016, 12:09:28 PM
 #22

There should be regulations put in place ensuring that all exchanges have insurance against hacks.

If an exchange is hacked, customers will be refunded by the insurance company.


▄▄▄███████▄▄▄
▄█████████████████▄
▄█████████████████████▄
▄███▀▀▀▀█▀█▀▀█▀▀▀▀████████▄
▄████ ██ █ ▄█ █ ██ █████████▄
█████ ▄▄▄█▄██▄█▄▄▄ ██████████
▐█████▄█████████▄▄▄▄██████████▌
▐██████████▀▀▀█▀▀▀██▀▀▀▀██████▌
██████████ ██ ██▌▐▌ ▀▀ ▐█████
▀█████████ ██ ██▌▐█ ▀▀▀█████▀
▀█████████████████████████▀
▀█████████████████████▀
▀█████████████████▀
▀▀▀███████▀▀▀
.Mobile..........
.Finance.......
.Marketplace..

              ▄██████▄
             ██████████
            ████████████
  ▄██████▄  ████████████
 ██████████  ██████████
████████████  ▀██████▀
████████████
 ██████████  ▄██████▄
  ▀██████▀  ██▀    ▀██
           ██       ▀██
           ██        ██
            ██▄    ▄██
             ▀██████▀

▄▄████████▄▄
▄████████████████▄
▄████████████████████▄
███████████████▀▀  █████
████████████▀▀      ██████
▐████████▀▀   ▄▄     ██████▌
▐████▀▀    ▄█▀▀     ███████▌
▐████████ █▀        ███████▌
████████ █ ▄███▄   ███████
████████████████▄▄██████
▀████████████████████▀
▀████████████████▀
▀▀████████▀▀
▄▄▄▄
██▀▀
██
██
██
██
██
██
██
██
██
██
██
████

BOUNTY
▄▄▄▄
▀▀██
  ██
  ██
  ██
  ██
  ██
  ██
  ██
  ██
  ██
  ██
  ██
████
▄▄▄▄
██▀▀
██
██
██
██
██
██
██
██
██
██
██
████

▄▄▄▄
▀▀██
  ██
  ██
  ██
  ██
  ██
  ██
  ██
  ██
  ██
  ██
  ██
████

▄██████████████████▄
██▀              ▀██
██
██                ██
██    ▄▄▄▄▄▄▄▄    ██
██    ▀▀▀▀▀▀▀▀    ██
██   ▄▄▄▄▄▄▄▄▄▄   ██
██   ▀▀▀▀▀▀▀▀▀▀   ██
██                ██
██
██                ██
██▄              ▄██
▀██████████████████▀

WP
▀ ▀▀▀
pawel7777
Legendary
*
Offline Offline

Activity: 1974
Merit: 1112


Coinomize.biz


View Profile WWW
August 31, 2016, 12:26:59 PM
 #23

There should be regulations put in place ensuring that all exchanges have insurance against hacks.

If an exchange is hacked, customers will be refunded by the insurance company.

That would be great, but costs of such insurance would likely be huge (if it was to cover 100% of customers' deposits) and those costs would be pushed on to customers in the form of higher fees. And if the hack happens it would probably take rather long time till insurer actually pays out.

Maybe it would make more sense for large exchanges to build up their own fiat money reserve designated to cover losses of potential hacks.

█▀▀▀











▀▀▀▀
▀▀▀█











▀▀▀▀
█▀▀▀











▀▀▀▀
.COINOMIZE.BIZ ⛓️ BEST BITCOIN MIXER.
▀▀▀█











▀▀▀▀
█▀▀▀











▀▀▀▀
☑️ INSTANT MIXING
☑️ VERY LOW FEES
☑️ 100% ANONYMOUS
▀▀▀█











▀▀▀▀
.START MIXING.
secattorney
Newbie
*
Offline Offline

Activity: 65
Merit: 0


View Profile WWW
September 09, 2016, 12:49:33 AM
 #24

One would generally be advised to not assume any tangible recovery from a bankruptcy or common law liquidation. HK follows the British common law with some exceptions in deference to China's civil statutes. The US is largely based on British common law but have some 150+ years of our own. That said, pursuing an individual claim may (at this stage) appear more valuable.

The trick is that, while one could in theory sue in any Federal jurisdication in the country, you would have to assume there are assets held in the US collect on any judgment - and that can include anything you can consider; bank accounts, payment processor balances, accounts receivable, IP, etc. Given the similarity with HK law, domesticating that judgment (as I have seen it done) is not terribly difficult to accomplish

In essense, this is the proverbial race to the courthouse.
Snorek
Legendary
*
Offline Offline

Activity: 1400
Merit: 1001



View Profile
September 09, 2016, 02:19:40 AM
 #25

Speaking about legal obligation to users. Is Bitfinex refunded stolen BTC the users in any way?
Last time I heard about their 'refund' proposal, they were trying to force some sort of "token" refund system instead of simply paying customers their coins back.

Is there are new info about this?
Quickseller
Copper Member
Legendary
*
Offline Offline

Activity: 2814
Merit: 2287


View Profile
September 09, 2016, 03:59:15 AM
 #26

Speaking about legal obligation to users. Is Bitfinex refunded stolen BTC the users in any way?
They previously paid out roughly 1% of the losses to customers about a week ago. They are currently attempting to raise money via an equity sale to have sufficient funds to make their customers whole. 

Chipmixer[/url][/color][/td][/tr][/table][/center]
Pages: « 1 [2]  All
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!