[2016-08-06] BS: Hacked bitcoin exchange says it will spread losses among users

[polynesia]

Hacked bitcoin exchange says it will spread losses among users

http://www.business-standard.com/article/international/hacked-bitcoin-exchange-says-it-will-spread-losses-among-users-116080600123_1.html

After suffering a crippling hack earlier this week, Hong Kong-based bitcoin exchange Bitfinex said it may spread the loss among its users, including ones not directly impacted by the hack.

"We are leaning towards a socialised loss scenario among bitcoin balances and active loans to BTCUSD positions," the exchange wrote in a blog post Friday. Bitfinex is still "settling positions and balances," and will provide more details soon, it said.


Efforts to contact Bitfinex were not immediately successful. A representative of the exchange, verified by Bloomberg, wrote on Reddit that users who either had bitcoin deposited at the exchange or who were in the process of lending US dollars for margin trading would be affected.

[philiveyjr]

All they did was take away 36% of the funds and instead credited their accounts with BFX tokens which they are claiming will be given 1$ values. Kind of another scam.

[Amitabh S]

Is there a dedicated thread to the bitfinex incident? Some questions I have:
1. How was it hacked?
2. What was the amount?
3. Settlement progress.

[polynesia]

Is there a dedicated thread to the bitfinex incident? Some questions I have:
1. How was it hacked?
2. What was the amount?
3. Settlement progress.

1) Not sure.. Does anybody know exactly what the security breach was?
2) 119,756 bitcoins or ~$70Mn
3) Losses are being spread across users. All users will see a haircut of 36% and will be issued BFX tokens (essentially bitfinex IOUs) instead.

[philiveyjr]

Is there a dedicated thread to the bitfinex incident? Some questions I have:
1. How was it hacked?
2. What was the amount?
3. Settlement progress.

There isn't a dedicated thread, but a lot of discussion on this thread https://bitcointalk.org/index.php?topic=1573336.0 , there is also a lot of discussion on the reddit thread on the bitcoin subreddit.