Bitfinex Reimburses First Bitcoin Exchange Hack Victims

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Bitfinex has reimbursed its first wave of customers.

Announced 1st September, the Hong Kong bitcoin exchange revealed it had purchased more than 1% of the blockchain debt tokens it issued to users in August as a way to pay them back for losses it incurred in a debilitating hack.

While a small step to recovery, analysts were largely positive about the move due in large part to the exchange’s decision to purchase the tokens at an above-market value of $1 each, roughly double the market value when the redemption took place.

Since the company’s issuance, the value of the tokens has fluctuated, but it has never approached the $1 mark promised by the exchange, sparking prominent concerns it would seek to buy back its own liabilities at a discounted market rate.

However, many still harbor doubts about the exchange, which lost roughly 120,000 BTC ($70m) in a security breach, and how it will navigate its complicated financial situation going forward.

While analysts said Bitfinex’s efforts thus far are “respectable”, others argue the markets will need to wait and see whether the exchange is committed to “a full recovery of lost coins”.

Response reviewed

To rewind, the buyback is perhaps the

Read more ... source: TheBitcoinNews

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