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Topic: Bitfinex legal obligations to users - page 2. (Read 1567 times)

full member
Activity: 196
Merit: 100
August 02, 2016, 09:50:06 PM
#6
That is about 70 Million USD. No company will be able to come up with that kind of Money right away to pay off all their users. Most likely will closed the exchange.

So do the Bitcoin holders lose everything or do Bitfinex liquidate LTC ETH and ETC to cover every customer equally? That was the question.
member
Activity: 84
Merit: 10
August 02, 2016, 09:45:55 PM
#5
I'm looking for answers here by someone in the know about bankruptcy laws. Bitfinex has lost 120,000 BTC but not their ETH ETC and LTC USD etc. Let's assume they are insolvent which to me seems probable.

Does this mean they have to liquidate all their assets to cover their entire customers equally? So sell off all their alts and then spread the BTC or USD across their customers.


To not make this complex we should replace cryptocurrency with currency i.e look at exchanges in USD EUR and other assets where there is precedent.

This is paramount to trading in the markets right now. Appreciate any help.

after hack what is money client can witdraw or not
market still open offline or close market
legendary
Activity: 1582
Merit: 1001
www.neutroncoin.com
August 02, 2016, 08:55:17 PM
#4
That is about 70 Million USD. No company will be able to come up with that kind of Money right away to pay off all their users. Most likely will closed the exchange.
sr. member
Activity: 336
Merit: 265
August 02, 2016, 07:57:22 PM
#3
I don't think the non-BTC accounts are protected. Even if they were also segregated accounts, the bankrupty of Bitfinex should view all segregrated accounts in equal legal standing, thus they all must suffer proportionally.

The theft is Bitfinex's liability.

So all non-BTC accounts on Bitfinex should be affected proportionally. I presume Bitfinex will eventually realize this. Unless law is somehow different in Hong Kong.

I presume the knee-jerk selloff of BTC is an overreaction. Bitfinex still has significant resources, so everyone on Bitfinex should probably get a loss but not a total loss.
hero member
Activity: 590
Merit: 500
August 02, 2016, 07:43:44 PM
#2
bitcoin dumping Shocked
full member
Activity: 196
Merit: 100
August 02, 2016, 07:40:27 PM
#1
I'm looking for answers here by someone in the know about bankruptcy laws. Bitfinex has lost 120,000 BTC but not their ETH ETC and LTC USD etc. Let's assume they are insolvent which to me seems probable.

Does this mean they have to liquidate all their assets to cover their entire customers equally? So sell off all their alts and then spread the BTC or USD across their customers.


To not make this complex we should replace cryptocurrency with currency i.e look at exchanges in USD EUR and other assets where there is precedent.

This is paramount to trading in the markets right now. Appreciate any help.
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