[2016-08-07] news.bitcoin.com-Here’s Why Bitfinex is Not Like MtGox

[Strongkored]

Here’s Why Bitfinex is Not Like MtGox

Bitfinex, a bitcoin exchange based in Hong Kong, was hacked last week and suffered a loss of roughly $70M USD. The company appears insolvent after announcing a loss of roughly 36-37 percent of its assets. Bitfinex has since stated that they intend to “socialize” these losses, meaning they expect creditors (anyone with any form of BTC funds at the exchange) to share in the losses equally.

However, under Hong Kong law, Bitfinex will not be able to force creditors to accept its proposal. Unlike in the US and Japan, Hong Kong does not have a system of bankruptcy protection to facilitate a Bitfinex reorganization. By arguing that Bitfinex is insolvent, creditor lawsuits could force Bitfinex into liquidation where creditors can take control.

READ MORE >>> https://news.bitcoin.com/heres-bitfinex-not-like-mtgox/

[Das]

If that happens, Bitfinex might go under permanently. Hope their customers don't make such demands.

Things are hard for Bitfinex as it is now.

[macedoniantable]

But now there is news that BleuTrade is having issues now too. 
What is wrong with all these exchanges? Can't they handle things when things go awkward?
Don't they have contingency plans in place so to limit the damage caused to their exchanges?
Expect more like Mt.Gox and Bitfitnex in the future.