[2016-09-02]Bitfinex Reimburses First Bitcoin Exchange Hack Victims

1Referee

legendary

Activity: 2170

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Quote from: WishICanTurnBackTime on September 02, 2016, 08:52:28 AM

Bitfinex has reimbursed its first wave of customers.
Announced 1st September, the Hong Kong bitcoin exchange revealed it had purchased more than 1% of the blockchain debt tokens it issued to users in August as a way to pay them back for losses it incurred in a debilitating hack.
While a small step to recovery, analysts were largely positive about the move due in large part to the exchange's decision to purchase the tokens at an above-market value of $1 each, roughly double the market value when the redemption took place.

http://www.coindesk.com/bitfinex-reimburses-first-bitcoin-exchange-hack-victims/

That just makes me laugh. Are people really that stupid to think it is a hack that caused the exchange to "lose" 120K BTC? Of course, it's not 100% sure that it has been like that, but the signs are there. I am still waiting for Bitfinex to publicly share the addresses where all these coins have gone to. Still something they didn't do....

yayayo

legendary

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I would be very careful to prematurely hail this as a positive sign. There is zero assurance that all customers will be reimbursed. After all, it's a common scam tactic to pay back a small amount of stolen funds to soothe victims. Clearly: I'm not saying that I'm sure the Bitfinex hack was an inside job and a planned scam. The circumstances are however still mostly unclear and several aspects surrounding the operators leave ample room for questions.

I really hope that an independent investigation will shed some light on the circumstances of the alleged hack. Even if it doesn't directly help the victims to recover their funds it may be beneficial to prevent similar forms of losses in the future. In the Mt.Gox case a lot of progress has been made to uncover the truth. Hopefully there will be progress in this case as well. But I guess we all need to be patient for now.

ya.ya.yo!

richardsNY

legendary

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It depends on how you look at it. I personally find every attempt to give back people's money a good one, but I don't trust Bitfinex at all. Especially because it's a very likely scenario that it was an inside job. See it as a ponzi, the first people are being paid out, but what happens after that.....?

TraderTimm

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Quote from: NewLiberty on September 02, 2016, 09:47:40 AM

Quote from: WishICanTurnBackTime on September 02, 2016, 08:52:28 AM

Bitfinex has reimbursed its first wave of customers.
Announced 1st September, the Hong Kong bitcoin exchange revealed it had purchased more than 1% of the blockchain debt tokens it issued to users in August as a way to pay them back for losses it incurred in a debilitating hack.
While a small step to recovery, analysts were largely positive about the move due in large part to the exchange's decision to purchase the tokens at an above-market value of $1 each, roughly double the market value when the redemption took place.

http://www.coindesk.com/bitfinex-reimburses-first-bitcoin-exchange-hack-victims/

This is the right way to do it, they have to repay at full issueance value (arguably with interest).
If Bitfinex bought at market value, they would create the appearance of impropriety (even if it were not improper, they could be accused and the accusation would become expensive).

Well done, Bitfinex, a good start.

Well done? I suppose if you consider stealing the funds first, then using them to "reimburse" people an achievement, then.... yeah, I guess.

They're circling the drain, and after having their volume more than halved since the "hack", I doubt they'll be in the position to continue much further...

Why anyone would applaud these crooks is beyond me....

Kprawn

legendary

Activity: 1904

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They have made too many crucial mistakes to win over the minds of the people who got hacked and even the people who did not get hacked, but

had to pay up for their mistakes. I will never go back there, because communication to the customers were poor to say the least. The company CEO

had dropped the PR ball, by hiding out like that. Shocked

NewLiberty

legendary

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Gresham's Lawyer

Quote from: WishICanTurnBackTime on September 02, 2016, 08:52:28 AM

Bitfinex has reimbursed its first wave of customers.
Announced 1st September, the Hong Kong bitcoin exchange revealed it had purchased more than 1% of the blockchain debt tokens it issued to users in August as a way to pay them back for losses it incurred in a debilitating hack.
While a small step to recovery, analysts were largely positive about the move due in large part to the exchange's decision to purchase the tokens at an above-market value of $1 each, roughly double the market value when the redemption took place.

http://www.coindesk.com/bitfinex-reimburses-first-bitcoin-exchange-hack-victims/

This is the right way to do it, they have to repay at full issueance value (arguably with interest).
If Bitfinex bought at market value, they would create the appearance of impropriety (even if it were not improper, they could be accused and the accusation would become expensive).

Well done, Bitfinex, a good start.

WishICanTurnBackTime

full member

Activity: 238

Merit: 100

Bitfinex has reimbursed its first wave of customers.
Announced 1st September, the Hong Kong bitcoin exchange revealed it had purchased more than 1% of the blockchain debt tokens it issued to users in August as a way to pay them back for losses it incurred in a debilitating hack.
While a small step to recovery, analysts were largely positive about the move due in large part to the exchange's decision to purchase the tokens at an above-market value of $1 each, roughly double the market value when the redemption took place.

http://www.coindesk.com/bitfinex-reimburses-first-bitcoin-exchange-hack-victims/

Topic: [2016-09-02]Bitfinex Reimburses First Bitcoin Exchange Hack Victims (Read 447 times)