‘Grumpy hold-outs’ could sink Bitfinex recovery plan after Bitcoin theft

* Cost-sharing plan could breach Bitfinex terms and

* Lawyers say its compensation token also open to challenge

* Hackers stole $72 mln of bitcoin from Bitfinex user

* Some users say Bitfinex plan could still be best option

By Clare Baldwin

HONG KONG, Aug 15 Crypto-currency exchange
Bitfinex’s plan to impose losses on all its trading clients for
the theft by hackers of $72 million in Bitcoin rests on two
flawed pillars, according to lawyers.

The Hong Kong-based exchange said on Aug. 2 that hackers had
stolen 119,756 bitcoins from some clients’ accounts, the
second-biggest such hack in dollar terms, and later said it
would spread the losses across all its customers, whether or not
they had been hacked or even held bitcoin.

It said customers would forfeit 36 percent of their holdings
and be given “BFX tokens” instead that could be redeemed by the
exchange or converted to shares in its parent company iFinex.

Both elements of the plan are open to legal challenge,
lawyers said.

Imposing losses on customers who were not hacked appears to
go against the company’s terms of service, said Ryan Straus, a
Fenwick West lawyer who

Read more ... source: TheBitcoinNews

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