Topic: [OFFICIAL]Bitfinex.com first Bitcoin P2P lending platform for leverage trading - page 274. (Read 723903 times)

I edited my response to jbssm's post and meant 22 the price jbssm sold at. 21 is borderline and you might have an argument, but 20.45 was the highest at btc-e at the time (check the history at btc-e) and hitting 21 at bitfinex would have been unlikely. But as I say there is no solution to please everyone. There will always be a few who feel unjustified by this but that's life. Accept it and move on.

The bug didn't come up by itself, someone exploited a vulnerability and deliberately put a fake order. It is a hack, there is no other word to describe the event.

The apologists will never get it. They apologise for Gox, for BFL and now for this. They will go on and on - they of course are not successful or big traders, there is no money where their mouths are and they will never change their opinion. So just leave it. Do what you need to do. I gotta love the long reply from someone using technical trader risk language - all of which misses the point. But I just gotta bite my tongue.

Come on, I sold it right on panic buy, I could have easily sold @21 if the hack didn't happen, but they handed me a $20 LTC. Thanks god it didn't tank more or my loss would be big. The thing is, I lost money for doing the right move, do you understand?

Can people stop using hack or hackers for this event. It was a bug in the trading platform software that probably wasn't discovered till recently.

Please jbssm, just quit whining, you spam all over reddit and this page because you missed out on some profit.

meanwhile, there are people fearing to get completely wiped out.

Let people take profit from the incident and compensate people who took losses with your own pocket, that's the most fair way to treat your innocent customers because the incident was caused by your sole mistake. You will most likely make back the money in a few weeks of time, why risk your reputation for a small amount of money.

Hi jbssm,

In light of your legal proceedings, it is in your best interest to abstain from making comments on a medium subject to legal discovery. Anything that you say here can be distorted in a court of law by Bitfinex lawyers. Quietly gather proofs and then make a case to a judge. Your lawyer will thank you for it.

The hackers didn't steal anything according to the Bitfinex announcement. The hackers would have had to withdraw the bitcoins/litecoins. Maybe they managed to withdraw a few from the hotwallet but the amount (if any) is probably very small and and loss would be covered by Bitfinex.

The main issue is if the trades are not reversed then it is inevitable the hackers will then proceed withdraw their gains when withdrawals are enabled again. It is virtually impossible to determine all the accounts the hackers would have controlled at the time (other than the one which exploited the bug and executed the huge market orders).

Most likely they would have set up multiple accounts and placed buy limits for litecoin at say $16 and sell limits at $22 just before the hack. Then with their main account they would manipulate the LTC ticker exploiting a bug/security vulnerability in the trading engine and place a huge market sell for LTC down to $16 (so their other accounts can buy cheap LTC at $16) followed by a huge market buy to $22 (so their other accounts can sell at $22 with a quick profit). Repeat this a few times as has happened and they would most likely have made a few hundred thousand dollars worth of LTC.

The main account of the hacker executing market orders would be easily determined by the admins and then the account frozen, however the other accounts of the hacker which placed the limit orders would be extremely difficult to determine, unless the hacker was stupid enough to use the same IP's as the main account (extremely unlikely).

The only choice the admins are left with would be to reverse all trades during the period so the hackers don't get away with anything, whilst simultaneously reinstating all accounts that would otherwise not have been affected if it wasn't for the hacks.

Also, many users who would not have otherwise lost or get stopped out, or end up with negative balances would be justified in having all trades reversed. Those trades which made a huge profit due to the fraudulent trades of the hacker will also have to be reversed. There is no way around this. Nobody loses, all accounts are reinstated back to before the attacks. The only people complaining are the ones who lost out on an unfair profit (which should not have been realized under any normal market circumstances). This is fairest solution considering everything and it is impossible to please everyone. There will always be complainers.

Good luck with that.

That 10,000 order was there for like an HOUR or TWO before it really started causing damage and the whole time people on the forum were talking about it. If only they had noticed it, they could have prevented the whole thing.

You should have abstained from trading but instead you took advantage of the exploit which gave you 25:1 leverage, now you pay the consequences.

This is what happened: Some hackers started playing with the ticker price and made huge profits by force liquidating many positions which made many traders go default. Hackers then withdrew all the coins and escaped. Then after about 4-5 hours Bitfinex team comes and rolls back. Great, So what happened to the money hackers stole? did they pay it out of their pockets? or they paid it by rolling back other traders ho had shorted?

Yeah but you can't sue them for stealing your money, because they didn't. That a trade in cryptocurrency malfunctioned or was turned back is not something you're going to find regulated to the point you can ask for compensation.

And let's be honest, you're not really going to sue anyone, it's not a positive value move. It's just a lot of noise because you're unhappy but realistically there is nothing you can do but hope the people running that site give you some compensation, if they feel like it.

I dont think that his original concern had to do with making profits from the abnormality. I think I kind of get where he is coming from.

Consider somehow who just wants to sell their LTC. Not someone who made a profit from the rat (like me), but someone saw LTC was about to crash and just wanted to sell their LTC, at any price. It didn't have to be the abnormal 22, it could be the normal 21. But then LTC crashes to 19. Now instead of having sold his litecoins at 22 or even 21, he now holds LTC valued at 19. Thus, he is at a loss from where he'd be if things were running as normal and the service was accessible.

Are you new? These things aren't regulated...that's kind of the point. You want the law behind you, go play on the stock market. Don't put any money in crypto you can't afford to lose, and don't whine if a technical issue stops you from making a "would be" profit. Risk of the game and all that.

1. Bitfinex did not even notice this issue for over SIX HOURS, despite emails, tweets, posts to the forum, and messages to their unofficial IRC channel.  In fact, people were discussing how to setup arbitrarily large positions in the #bitfinex channel itself.

2. Bitfinex is "rolling-back" trades, but from what timestamp?   All of my LTC/BTC trades last are still registered in History.  Which trades will Bitfinex honor?  What about the swap charges that were multiplied by 10x?  Those charges, at least for me, were not reversed.

3. Money was clearly made on artificially Huge LTC and BTC market moves, and those coins were withdrawn (150K LTC coins, as reported on IRC).  So, how much of that cost is being borne by the customers, and how much by the exchange?  Will this come from the "insurance" fund?  Are you still fully capitalized in both your Hong Kong account (used to reconcile with Bitstamp) and your Shanghai account?

Giancarlo, I'm sure you're busy, so maybe just let us know you'll send a more complete explanation when you've put together a remediation plan.   The worst thing you could do now is make it sound like it was no big deal.  My coins are withdrawn until it's clear you have a handle on the situation.

PS: Support & Testing - you need to get serious about them.

Question: If you get a margin call on your trading wallet, but you have funds in your exchange wallet, will funds get pulled from your exchange wallet into your trading wallet, or will you get liquidated?

I ask because during slow markets, I primarily trade using exchange wallet rather than trading wallet, so that I don't get charged lending fees. But I still have a bunch of leveraged orders on my trading wallet at incremental low prices in case of flashcrashes and I really don't want to bother having to cancel them all whenever I want to trade on exchange and re-place them whenever I'm done trading on exchange. However, today with that bug two of my outermost flashcrash orders got hit while I had nearly no funds in my trading wallet and it was really a wakeup call. I had 0.8btc in my trading account and I bought 5 btc at 690.1 and 5btc at 680.1. lol. Luckily the price didn't go any further.

In the case that the wallet would be liquidated, I will have to adjust my strategy so that I primarily do trading on the trading wallet and in times when I want to be "in fiat" I will hold a balance of bitcoins but "short" the balance and have an open short position with an equal amount of bitcoins.

What you're saying is not logical here. LTC price always jumps up and down like this on finex, this is not the first time, it even went to 0.0001 on china panic. I saw that swings and just wanted out, didn't wanted any profits, just to be safe in fiat, and I'm sure I wasn't the only one. But now I'm in loss because they handed back my LTC's after the price came down, and still is going down. My question here is, What happened to the money hackers stole? who paid it?