A bitcoin exchange that got hacked for $65 million says all its customers will lose 36% of their funds
It's a huge hack — the second-largest ever successful confirmed
attack on a bitcoin exchange. Back in 2014, MtGox, then the
largest exchange, collapsed after
$460 million in bitcoin was stolen by apparent hackers.
It's not yet clear what the nature of the breach of the exchange was, or who was responsible for the attack. In the immediate aftermath, the price of bitcoin dropped 20% compared to its 24-hour high — as low as $480, down from $607.
Ethereum — an alternative digital currency — has recently been rocked by an attack on the DAO, a decentralised organisation that ran on its blockchain. The attacker managed to obtain $50 million-worth of Ether, but the community effectively split the currency in a "hard fork" to prevent them from being able to use it.
"Following the theft on August 2nd, the Bitfinex team has been working tirelessly towards bringing the platform back online in a secure and controlled manner. We have finalized the accounting of losses incurred and are currently coordinating strategic plans for compensating customers.
In return, customers are being given digital "tokens" that record their losses, which may one day be redeemed or exchanged for shares of iFinex, the company that operates Bitfinex.
We are actively discussing various strategic options with numerous potential investors as part of our strategy to fully compensate our customers. Such discussions, however, are in early stages and will likely take time to play out. In the meantime, In place of the loss in each wallet, we are crediting a token labeled BFX to record each customer’s discrete losses. Tokens will be distributed without release or waiver. The BFX tokens will remain outstanding until redeemed in full by Bitfinex or possibly exchanged—upon the creditor’s request and Bitfinex’s acceptance—for shares of iFinex Inc. We are still sorting out many details on this; we will post further updates in the coming days.
As disclosed in earlier announcements, all withdrawals, open orders, and open funding offers have been canceled and all financed positions have been settled. Exact settlement prices were published on August 3rd.
A bitcoin exchange that was hacked for $65 million says that all of its customers will lose 36% of their funds to account for the losses.
Bitfienx is one of the biggest exchanges out there: It dominates bitcoin-USD trading, making up 50% of total volume. It also disrupts what has been a bullish year for the currency thus far. As recently as January 2016, bitcoin was trading at just over $200 — less than a third of its $740-odd June 2016 highs.
We intend to come online within 24-48 hours with limited platform functionality. Additional announcements will be made as we progressively enable more platform features and return to full operations. We appreciate that our customers and the public want this handled quickly, but it needs to be done a way in which all assets are secure and immune from vulnerabilities. Every resource is being leveraged to make that happen in a safe and optimal way.
Thank you for your continued patience and for the many generous offers of support that we have received over the last several days. Notwithstanding this attack, we continue to believe in the possibilities associated with bitcoin. We will continue to update our customers and the public as and when we can."
After much thought, analysis, and consultation, we have arrived at the conclusion that losses must be generalized across all accounts and assets. This is the closest approximation to what would happen in a liquidation context. Upon logging into the platform, customers will see that they have experienced a generalized loss percentage of 36.067%. In a later announcement we will explain in full detail the methodology used to compute these losses.
On Saturday, the Hong Kong-based business announced these losses will be "generalized" — meaning all the losses will be shared between all users, even if none of their bitcoins were taken.
Bitfinex, one of the largest bitcoin exchanges in the world, had almost 120,000 bitcoins stolen by hackers on August 2.
Investors are Selling Gold to Invest in Bitcoin, Key to Multi Trillion Dollar Market Cap
According to ACG Analytics US macro strategy head Larry McDonald, investors have begun to sell gold to invest in bitcoin through the newly launched bitcoin futures exchange of the Chicago Board
Cramer: Bitcoin's futures launch is a 'very big victory' for the digital currency
The launch of Bitcoin futures on the Cboe Futures Exchange over the weekend was a "very big victory" for the digital currency, CNBC's Jim Cramer said Monday. Bitcoin futures, trading under the
Here's what bitcoin futures could mean for the price of bitcoin
Grey Dwyer, BitMEX head of business development, talks with Business Insider executive editor Sara Silverstein about how futures contracts are going to impact the bitcoin community. Following is a tra
Litecoin Price Leaps 30% to New All-Time High
Litecoin price leaped by nearly a third on Monday, raising the sixth-largest cryptocurrency to a new all-time high.
For most of December, the litecoin price had traded between $90 and $100, but on
Bitcoin Analysis December 12, 2017
BTC/USD Bitcoin has been very volatile over the weekend, reaching as low as $13,000. However, after futures trading opened a, it became apparent that buyers were jumping into the Chicago exchange.
Ethereum Analysis December 12, 2017
ETH/USD Ethereum has been choppy over the last several days, as the weekend was noisy. Most of the interest around the world seems to be focused on Bitcoin and the reaction of the Chicagoâs
DASH and Litecoin Analysis December 12, 2017
DASH/USD DASH continues to be very choppy, forming a bit of a âW patternâ over the weekend. Because of this, I believe that we are eventually going to break out to the upside but a move above
BitGo Scores $43 Million as Crypto Goes Corporate
BitGo, the maker of multi-signature cryptocurrency wallets for enterprises, has closed a $42.5 million Series B funding round in a sign that demand has at last arrived for institutional-grade services