will bitfinex users accept a generalized loss percentage of 36.067% across all accounts and assets. or will we see a class action soon?
If your bank or my broker gave you a 36% haircut? But I bet you're right, people will vent a little, tire themselves out, take what they're given.
banks get bailed out.
altho, i have heard rumours that governments would stop doing this and bail-in's like Cyprus might be become the norm again ( i say again because apparently back in the day, banks were not "to big to fail" )
No, for cases like this banks have *insurance*. In US, that's FDIC. The bank might fail (3 have in 2016), but their customers, punters like you, lost exactly no money. None. Nothing to do with bailouts.
But let's forget banks. You'd take this haircut from your broker? I wouldn't take that shit ("Honest man, I got robbed") from my runner. People don't even know wtf happened, and they're already gushing with gratitude because they
got some edit: got promised some of their money back. Even the dollar holders, whose shit wasn't affected. Amazing. No wonder people here always get robbed -- might as well hang a sign saying "ROB ME BRO, No consequences at all if you fuck up, and I'll be your best friend if you let me keep half. You can't lose!"
Enjoy bailing in BFX and "Socialized losses," lol.
isn't the FDIC just formalizing the agreement that governments will bail-out banks? oh wtv. i dont need to know how the legacy system works.
point is bitfinex has been hacked, shame on them for having a shitty p2sha wallet impl??, or maybe it was an inside job?? doesn't really matter, the end result is the same, (unless someone can prove it was an inside job and find the person responsible...) but IMO they are handling it the best that they could.
i do believe that if this would go to court we would have the same result, liquidation of bitfinex and all accounts and assets getting a very similar % of their funds back, ( we saw this result with mtgox did we not?) but they wouldn't see there money for years, they would have to pay lawyers and bitfinex would be dismantled.
keeping this out of court and accepting bitfinex's settlement is probably in the best interest of everyone involved.
I agree overall that Bitfinex's settlement proposal is pretty decent, given various alternative possible outcomes, but making some kinds of arguments, that this is the best we can get based on settlement in court blah blah blah.. seems to be going a bit too far..
and also suggesting that this is amongst the best of the arrangements is going too far, too. Ultimately, we gotta continue to take what Bitfinex says with a grain of salt and also to attempt to hold their feet to the fire in that hopefully in the long term the intent is for Bitfinex to attempt to provide full restitution to their users, and hopefully the bitfinex coin is intended, designed and will be implemented in such a way to strive towards the achieving of the long term restitution of existing customers (who are taking a haircut).
Bitfinex cannot lose sight that they owe a duty to their customers, and they fucked up in some kind of way in allowing this to happen to such a considerable magnitude.
i guess your right, taking this to court might actually yield slightly more money for everyone.
but i think the courts would have bitfinex liquidated. and there simply isn't enough money in bitfinex to get users that much more money
maybe users would only have a 30% hair cut going with the courts?
its not worth it.
because the money would be tide up for a long time
because its not even guaranteed to get less of a hair cut
I think bitfinex idea of pretty much matching what the court would do was the only move they could have done to avoid going to court.
You seem to be misreading me, because I was not arguing that going to courts would be any kind of better solution, and in fact, I believe that Bitfinex proposing some kind of reasonable solution is likely going to lead to better outcomes.
I was mostly quibbling with what I perceived as your black and white framing of the matter, and your seeming suggestion that Bitfinex had chosen amongst the best of arrangements.
Accordingly, there are a lot of arrangements that they could tailor, and the public is not going to really find out actual details of their financial circumstances because they are not going to completely disclose all of their circumstances, unless they feel that they have to do so.
On the other hand, in order to generate customer confidence they do have to disclose enough information that customers are going to be sufficiently content as to continue to use their services...
In the end, all of this is a bit of a balancing act, and it is not black and white, and we need to continue to be skeptical regarding various aspects of the representations of Bitfinex.
