The recent hacking incident faced by Bitfinex has made a huge impact on the digital currency platform. Many customers have started withdrawing their digital currency holdings from the platform since it re-enabled the feature.
After coming under attack, Bitfinex announced a loss of about 119,756 bitcoins amounting to about $72 million (according to the bitcoin price at the time of attack). As the company continues to investigate the incident, it re-opened the platform with limited functionalities for its users. On August 10, 2016, the platform announced the resumption of withdrawals and deposit services for BTC, ETC, ETH and USD assets.
Since the reintroduction of services, the platform’s cryptocurrency reserves have started to deplete in a record pace. According to currently available information, over 90000 bitcoins were withdrawn from the platform in less than two days. The withdrawals are fueled by both the hacking incident and the platform’s decision to generalize losses.
The generalized losses are distributed across all users, forcing them to lose about 36 percent of their assets held on the platform.