Bitfinex asks users to help in Recovery

[NorrisK]

If I had any funds there I would withdraw them as soon as possible when they open up withdrawels... There is likely to be a massive bank run after they open up again and seeing how only bitcoin are missing, they have limited coins available to handle the withdrawels (unless they start buying them with the fiat they hold, which is possible as also fiat holdings get a haircut). Let alone potential law suits and bankrupcy around the corner.. get those funds out..

After that, the only thing you can do is hope the placeholder coins somehow turn into something of value over the coming years to lessen the blow.

To the ones saying bitfenix should take the loss.. That will probably result in a mt. gox situation where the people still don't have their coins after 2 years... I would rather have 70% of my coins now than a chance for more after a looooong process..

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[crairezx20]

giving them a time is fine but if it's about the money, i guess the one who make the mistake here is the company and not the client,so,if they're asking about the money or cutting client's fund until 36%,doesn't make sense at all

I think the Bitfinex should take the loss. It should let the client take over the company if it does not want to declare bankrupt.

Yeah if this is true that bitfinex are asking for help because its impossible that they will be asking..
For its smell fishy if he is asking to borrow some coins and deposit in there business..
Its risky.

[Daniel91]

giving them a time is fine but if it's about the money, i guess the one who make the mistake here is the company and not the client,so,if they're asking about the money or cutting client's fund until 36%,doesn't make sense at all

I think the Bitfinex should take the loss. It should let the client take over the company if it does not want to declare bankrupt.

Yeah if this is true that bitfinex are asking for help because its impossible that they will be asking..
For its smell fishy if he is asking to borrow some coins and deposit in there business..
Its risky.

They already lost their reputation and I don't think that they will ever recover from this loss.
They will probably bankrupt so any new funds send now will be lost again.
People, please be smart, don't trust such services any more and try to keep your funds in more secure places like your own wallets.
Of course, always check your computer and Internet security.

[var53]

It will be interesting to see, if this recovery plan will work out. After all, it is an offer. Given the circumstances I would also say it is a pretty good offer. At least it is much better than having another Mt.Gox-style bankruptcy.

It's better than another Mt.Gox-style bankruptcy for the customers, and the Bitfinex owners if Chinese prisons are as rough as Japanese prisons. Have you seen how much weight Karpeles has lost in a Japanese prison? He went in a fat blob and came out like a matchstick man.

If the same fate awaits the Bitfinex owners if they are jailed, then avoiding it through this recovery plan is the best deal they could hope for.

[franky1]

There is likely to be a massive bank run after they open up again and seeing how only bitcoin are missing, they have limited coins available to handle the withdrawels (unless they start buying them with the fiat they hold, which is possible as also fiat holdings get a haircut). Let alone potential law suits and bankrupcy around the corner.. get those funds out..

you are right.. its maths
imagine the exchange had (simplified numbers for demo only)
$400k held in bitcoin
$200k held in altcoins
$400k held in dollar
totals $1m combined holdings (simplified numbers for demo only)

now imagine 36% of $1m total (combining of funds to spread the loss) was lost.
yet we know it was not other funds just bitcoin lost.. so that means $360k of only bitcoins are gone!!

thats basically most of the real bitcoin reserves ($400k holdings, $360k loss = only $40k bitcoin (10%) left in reserves )

those bitcoin customers which initially counted up as $400k total holdings were told they had $400k with 36% loss.. meaning they are WRONGLY being told that there solvent balance of 64%, which logically accounts to $256k of bitcoin.. when actually there is only $40k of bitcoin in the pot.

in simple terms $360k bitcoins LOST of $400k. bfx is saying to bitcoin holders, that they are solvent of bitcoins to a tune of $256k, yet physically only have $40k(in this demo)

they cannot magic the other $212k of bitcoin into existence out of thin air.
and that missing $212k is not even part of the 36% theft.. but the missing bitcoin of the "solvent balance, that has been offset by alts and dollar..
and needs to have bitfinex buy bitcoins on other exchanges to cover just that 64% solvent balance

so ofcourse there will be a bank run while bitcoin holders owed $256k(the 64% in my demo), try to fight to withdrawal the $40k bitcoin left in a few days.
as it will take alot longer for bitfinex to try to get the other $212k(demo number) from other exchanges.

in short (my demo amounts)
$40k actual reserves= circle hole 1inch diameter
$256k solvent balance = square peg 6inch wide

even after this.. if bitfinex manages to sort out the solvent part by obtaining bitcoin from other exchanges.. they then have to work on the 36% loss

[n691309]

http://satoshibonus.blogspot.com/2016/08/bitfinex-share-loss.html

Bitfinex asks users to help in Recovery by sharing the loss.

Saying the truth 36.067% is a bit high for users but at least they are not locking the other funds (~64%), seeing how the other exchanges behave when they got hacked then bitfinex seems better than them, it's still better 64% than nothing.

[Barbut]

They "lost" money, or someone stole that money, and now they wish help to recover their loses? To me that sounds like they are trying to get out of the problems, but its big question can this recovery program work. They will need a lot of help, and they don`t have licences and based on problem they have I doubt they will find enough people to help them.
Its nice that they are trying to do something, but for them it seems like its too late for everything. I don`t wish to make any wild predictions, I just don`t believe in success, trust is fragile thing, easy to break and its very hard to get it back.

[interbtc]

http://satoshibonus.blogspot.com/2016/08/bitfinex-share-loss.html

Bitfinex asks users to help in Recovery by sharing the loss.

Saying the truth 36.067% is a bit high for users but at least they are not locking the other funds (~64%), seeing how the other exchanges behave when they got hacked then bitfinex seems better than them, it's still better 64% than nothing.

They have no right to make claim on user funds, but i guess even that is better than outright closing down. If people indeed get shares
that would enable them to recoup their losses as exchange continues with it's trading - i guess people won't find it as intrusive as it is.

[Bit_Happy]

"Following the theft on August 2nd, the Bitfinex team has been working tirelessly towards bringing the platform back online in a secure and controlled manner. We have finalized the accounting of losses incurred and are currently coordinating strategic plans for compensating customers.

We intend to come online within 24-48 hours with limited platform functionality. Additional announcements will be made as we progressively enable more platform features and return to full operations. We appreciate that our customers and the public want this handled quickly, but it needs to be done a way in which all assets are secure and immune from vulnerabilities. Every resource is being leveraged to make that happen in a safe and optimal way..."

Wow.
Have they used "words" to explain why Bitfinex supposedly had such a large amount in a hot wallet?

[SidaroffVany]

"Following the theft on August 2nd, the Bitfinex team has been working tirelessly towards bringing the platform back online in a secure and controlled manner. We have finalized the accounting of losses incurred and are currently coordinating strategic plans for compensating customers.

We intend to come online within 24-48 hours with limited platform functionality. Additional announcements will be made as we progressively enable more platform features and return to full operations. We appreciate that our customers and the public want this handled quickly, but it needs to be done a way in which all assets are secure and immune from vulnerabilities. Every resource is being leveraged to make that happen in a safe and optimal way..."

Wow.
Have they used "words" to explain why Bitfinex supposedly had such a large amount in a hot wallet?

Man, so this is pure fraud. They have created this hacker or together with the organized theft.

[Tanic]

Must be they ask for help only for big amount holders. I didn't have any contact with this site and found out about it only after it's hacking, it was on every news. Don't know what happen with users who's money were stolen. Will the site come back pi

[franky1]

Must be they ask for help only for big amount holders. I didn't have any contact with this site and found out about it only after it's hacking, it was on every news. Don't know what happen with users who's money were stolen. Will the site come back pi

i suspect they want to convert the big holders into company share holders and release the debt. and then use that "free credit" to the smaller holders. EG turn their entire 100% bitcoin holding (64% solvent and 36% debt) into shares to use the large holders bitcoins elsewhere and prevent as large of a bank run as possible.

i could also see they may also want to just pay off some of the really small holders completely and in full as another plan, simply to have less arguments, less numbers of people that are threatening them at as little cost as possible. and hope it inspires some positive drama by small holders celebrating they got bailed out quickly

[Shiroslullaby]

They could just be trying to write some debt off their books before going into bankruptcy.
Does anyone think a business can recover after a loss like this?
I've been away for a few days and missed most of the drama. Wern't they wiped out completely?
If they had their reserves emptied I would be surprised if they were able to keep the doors open more than another month or two.

[JeffBrad12]

Does anyone think a business can recover after a loss like this?
I've been away for a few days and missed most of the drama. Wern't they wiped out completely?

Maybe the chance for the business can recover their self is always there but in this cases, it's too fast for bit fine to recover their business, but I sure in my opinions they just not wanna to losing the momentum about the bitcoiners is still believe with them. but that's so amazing to healing with a short time period.

[Doamader]

Well the thing is they cant recover those 120k bitcoins, soo they are offering part of the company, i dont know how fair this is being for the costumers, now imagine a big farmer using them and lost a big part of those and now they have others people bitcoins, i dont know how far this will go.

[Achargeturry78]

I can't really see anyone wanting to help them out, not after a substantial loss like that.

yeah if they continue to run the website the site will be bankrupt because of what happen thats a lot of money if he/she going to pay all the bitcoins or coins that lose in that exchange website i think the best solution to keep the site running is to find some sponsor who can sponsor the recovery of the website where the people going to trust them again

[Nrcewker]

funny, but justifiable since the loss is too heavy and bitfinex asked, you did.

[mk3000]

Bitfinex is done. if people do manage to get what they have left out of there, they should consider themselves lucky. but this is a positive thing for bitcoin, since the price didn't drop too much and it's been recovering since the "hack".

[cpfreeplz]

If I had any funds there I would withdraw them as soon as possible when they open up withdrawels... There is likely to be a massive bank run after they open up again and seeing how only bitcoin are missing, they have limited coins available to handle the withdrawels (unless they start buying them with the fiat they hold, which is possible as also fiat holdings get a haircut). Let alone potential law suits and bankrupcy around the corner.. get those funds out..

After that, the only thing you can do is hope the placeholder coins somehow turn into something of value over the coming years to lessen the blow.

To the ones saying bitfenix should take the loss.. That will probably result in a mt. gox situation where the people still don't have their coins after 2 years... I would rather have 70% of my coins now than a chance for more after a looooong process..

Times like these just make me so glad I'm no one of those naive newbies that get into these Ponzi / exchanges. There will ALWAYS be another hack or inside job. Get out of exchanges and stay out!

[Strongkored]

Times like these just make me so glad I'm no one of those naive newbies that get into these Ponzi / exchanges. There will ALWAYS be another hack or inside job. Get out of exchanges and stay out!

Yeah, even though they're back online and operating. I think it is too risky if you keep using their services. Because really you say, there is always the possibility of breaches. Better holding your bitcoin in your wallet. hehe