I was a bit shocked when I read you saying 120K coins are lost, but it seem to be right. Coindesk is also reporting about 120K. The losers are always the customers. Same as banks going down, customers pay for the trash left by the bank, which in this case happens to be a Bitcoin exchange. I am actually surprised that the price is holding its position right now. With that many coins stolen I expect the price to stay below $500 for a while.
From: https://bitfinex.statuspage.io/#
Quote
Investigating - We are currently in an ongoing process of restoring limited functionality in a secure environment, with full functionality coming afterwards in progressive stages. The first step is bringing the site online and allowing users to login and view the state of their accounts. Note that initially trading, deposits, withdrawals, and other core site functionality will be disabled.
To accommodate the relaunch, all withdrawals, open orders, and open funding offers will be canceled. Furthermore, in order to compute losses for relevant parties, settlement must occur in the affected accounts. Margin positions for all pairs will be settled and closed using the following prices, representing the midpoint of the bid and ask on August 2, 2016 at 18:00:00 UTC:
BTCUSD: 604.06000000
ETHUSD: 10.19050000
ETHBTC: 0.01689900
ETCUSD: 2.83700000
ETCBTC: 0.00471495
LTCUSD: 3.75180000
LTCBTC: 0.00621295
Further announcements about the next steps of the relaunch will be posted as progress is made. All significant changes to feature availability will be announced in advance. We will strive to keep you as informed as we can.
The Bitfinex Team
To accommodate the relaunch, all withdrawals, open orders, and open funding offers will be canceled. Furthermore, in order to compute losses for relevant parties, settlement must occur in the affected accounts. Margin positions for all pairs will be settled and closed using the following prices, representing the midpoint of the bid and ask on August 2, 2016 at 18:00:00 UTC:
BTCUSD: 604.06000000
ETHUSD: 10.19050000
ETHBTC: 0.01689900
ETCUSD: 2.83700000
ETCBTC: 0.00471495
LTCUSD: 3.75180000
LTCBTC: 0.00621295
Further announcements about the next steps of the relaunch will be posted as progress is made. All significant changes to feature availability will be announced in advance. We will strive to keep you as informed as we can.
The Bitfinex Team
Seems like Finex are going down the route of passing the losses onto accounts that were drained of BTC and/or had BTC/USD tied up in margin trades affected by the theft.
From a selfish point of view....thank fuck that Finex are going to screw over their customers whose accounts were drained and not socialise the losses. I have already been burned on Kraken a fortnight ago, (no fkn socialised losses there), I could really do without it happening again on Bitfinex (I had only USD on Finex. No Bitcoin).
I had already long decided to remove all funds from BTC and keep the fuck away from this corrupt cesspit of a market after my Kraken account was emptied.....I imagine after this massive Bitfinex theft, that there will be many more Bitcoin market participants who are thinking just like me. Could be the beginning of the end for Bitcoin imo. What might save Bitcoin is the emergence of highly liquid, fully regulated, and fully accountable exchanges...but until then, this is the Wild West, and everyone is getting shot up and getting weary of it.
I am doing my trades on Bitstamp and Kraken, and so far nothing weird or suspicious has happened to me. But I do agree with you on the fact that current BTC exchanges are nothing more than a joke. I think Bitcoin needs an exchange that is maintained by NYSE for example. One global order book and a professional platform is what we need. Wall street traders will not buy themselves a position into Bitcoin with the current exchanges. And I can't blame them for that.
