Bitfinex May Spread Its Losses Across The Board


Bitfinex, a Hong Kong-based cryptocurrencies exchanged, said its site would be up and running in a reduced capacity within a couple of days so that users can log in and check their accounts out.

For users worried their accounts have been affected by the hack – that their whole holding on Bitfinex is gone, Bitfinex has decided to generalize its losses by providing all users with a 36.067 percent haircut to cover the bitcoin wallets that were affected. This means the loss of $72 million would be spread out across all users.

The company said details were still being worked out and finalized, so nothing is concrete. However, the company was looking at a socialized loss scenario with the bitcoin balances and active loans with U.S. Dollar/Bitcoin positions.

Bitfinex stopped all trading after it found the breach on Tuesday. An unknown number of users were affected with nearly 120,000 bitcoins being stolen or 0.075 percent of all circulated bitcoins.

Charles Hayter, CryptoCompare CEO, admits some users are going to be upset that they’ll have to lose some of their funds to address the shortfalls experienced on the exchange. Only time will tell if the decision to do this is right or not. He said other changes were able to fund losses for themselves, but that their losses weren’t so serious.

Bitfinex’s capital holdings had a loss of 10 to 30 percent.

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