Digital Currency Exchange Bitfinex to Pay 75k Fine to CFTC

Bitcoinpro

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Quote from: Soros Shorts on June 02, 2016, 06:57:53 PM

Quote from: countryfree on June 02, 2016, 05:42:20 PM

I've one article about it and I'm not sure I understand what's going on. If I got it right, Bifinex was fined because it didn't actually send its customers the BTC they've just got from its service, and kept it on a wallet it controlled. But there was no theft. The customers were still able to access their BTC via the Bitfinex interface?

Please, anyone correct me if I'm wrong.

Basically correct. To make it legal in the US the coins should have been sent to a separate entity, a custodian or prime broker who will hold them on behalf of the customer, instead being held under the control of Bitfinex.

U mean until the future's contract expired

It really sounds like Bifenex pay CTFC x amount to

keep ur US customers, Bitcoin produces the

most shadiest of extortion attempts

I'll read thru some of the news stories after

s cuppa

mkc

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Don't get it, Bitfinex is a Hong Kong company, why it has to be fined by US?
No wonder some exchange will not take customers from USA.

countryfree

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Activity: 3066

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Your country may be your worst enemy

Quote from: Soros Shorts on June 02, 2016, 06:57:53 PM

Quote from: countryfree on June 02, 2016, 05:42:20 PM

I've one article about it and I'm not sure I understand what's going on. If I got it right, Bifinex was fined because it didn't actually send its customers the BTC they've just got from its service, and kept it on a wallet it controlled. But there was no theft. The customers were still able to access their BTC via the Bitfinex interface?

Please, anyone correct me if I'm wrong.

Basically correct. To make it legal in the US the coins should have been sent to a separate entity, a custodian or prime broker who will hold them on behalf of the customer, instead being held under the control of Bitfinex.

OK, thanks. So it's a very big fine considering no customer had suffered a loss or a theft. It's a big warning to the others, and maybe a reason not to do business in the US.

Soros Shorts

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Quote from: countryfree on June 02, 2016, 05:42:20 PM

I've one article about it and I'm not sure I understand what's going on. If I got it right, Bifinex was fined because it didn't actually send its customers the BTC they've just got from its service, and kept it on a wallet it controlled. But there was no theft. The customers were still able to access their BTC via the Bitfinex interface?

Please, anyone correct me if I'm wrong.

Basically correct. To make it legal in the US the coins should have been sent to a separate entity, a custodian or prime broker who will hold them on behalf of the customer, instead being held under the control of Bitfinex.

countryfree

legendary

Activity: 3066

Merit: 1047

Your country may be your worst enemy

I've one article about it and I'm not sure I understand what's going on. If I got it right, Bifinex was fined because it didn't actually send its customers the BTC they've just got from its service, and kept it on a wallet it controlled. But there was no theft. The customers were still able to access their BTC via the Bitfinex interface?

Please, anyone correct me if I'm wrong.

Meuh6879

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if you want to convert the world, you must be in america ... yes, no ?

traderman

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http://themerkle.com/cftc-hits-digital-currency-exchange-bitfinex-with-75k-fine/

I wonder which other margin trading exchanges get hit next?

Topic: Digital Currency Exchange Bitfinex to Pay 75k Fine to CFTC (Read 403 times)