Bitfinex ‘Leaning Towards’ Bail-In, Haircut for All BTC Traders

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As it tries to mitigate the effects of last week’s theft of nearly $68 million, Hong Kong exchange Bitfinex has announced it may make all Bitcoin traders using its service pay the price.

Also read: Bitcoin Price Rebounds as Bitfinex Licks Wounds

‘Socialized Loss Scenario’ for Bitcoin Traders

In a blog post today, the exchange said it was “leaning towards” evenly distributing the loss of 119,756 BTC among its user base – even those whose funds had not been touched. The post reads:

We are still working out the details so nothing is set in stone. However we are leaning towards a socialized loss scenario among bitcoin balances and active loans to BTCUSD positions.

Last week’s hack, which occurred on August 2, sent shockwaves through the Bitcoin community, with prices plunging over 20% before staging a modest comeback over the week.

StolenTaxRefundAn investigation into how the incident occurred is still ongoing, while fingers have been variously pointed at Bitfinex, its security partner BitGo and even US legislators. BitGo has released a statement announcing its software “was working correctly.”

The exchange said more information on its contingency plans would be available Saturday, while it is still filling

Read more ... source: TheBitcoinNews

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