More Troubles Brewing for Bitfinex after Socializing Losses?

Bitcoin Watch Shop

It seems like Bitfinex has more to worry about than just the loss of 119,756 bitcoins to hackers. The platform recently announced that it will be generalizing the losses across all users.

According to the exchange’s calculations, the generalized loss percentage is set at 36.067 percent. Meaning, all Bitfinex users will be contributing more than a quarter of their digital currency holding so that the ones who lost can be reasonably compensated at the moment. In return, the platform will be offering BFX tokens to record each user’s discrete loss. Bitfinex intends to redeem the tokens on a later date with the help of funds raised through investors or its equivalent value in shares of iFinex Inc.  While this seems to be a good idea for the exchange to buy more time to recover from the losses, it may not hold good in the eyes of the law.

Since Bitfinex announced its plans to socialize the losses across all users, there are numerous reports about Bitfinex and its promoters emerging on social media and other cryptocurrency sites. The current arrangement made by the exchange to generalize losses may expose Bitfinex to legal action by its customers.

Prof. Emin Gun Sirer from Initiative for

Read more ... source: TheBitcoinNews

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