Hacked Bitcoin Exchange Users to Lose 36%

Hong Kong-based Bitfinex said all users will lose 36 percent of their deposits after the bitcoin exchange concluded its review of a $71 million hacking attack.

To compensate its customers, Bitfinex said users will receive tokens that may later be redeemed or exchanged for shares in its parent company. Following the announcement, bitcoin climbed to $594 as of 10:55 a.m. on Sunday in Tokyo, based on prices from Coinbase. The virtual currency dropped 12 percent to $577.23 in the week through Friday, its largest weekly decline since June, according to Bloomberg prices.

“After much thought, analysis, and consultation, we have arrived at the conclusion that losses must be generalized across all accounts and assets,” the exchange wrote in a blog post on Saturday. “In place of the loss in each wallet, we are crediting a token labeled BFX to record each customer’s discrete losses.”

Efforts to reach Bitfinex were not immediately successful. A representative of the exchange, verified by Bloomberg, wrote on Reddit that the 36 percent loss “applies to all assets across the site, so everyone.” The exchange previously Read more ... source: TheBitcoinNews

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  • BestWisdom

    Maybe they should change the name of this currency to “BitchCoin”. Cuz that’s what it is.