The $65 million Bitfinex hack shows that it is impossible to tell a good bitcoin company from a bad one

Bitcoin suffered yet another blow last week when Bitfinex, one of the cryptocurrency’s largest exchanges, suffered a hack that cost its users about $65 million. Every one of its investors saw their funds suddenly drop by 36%, as the company decided to “socialize” the losses.

The source of the security breach remains unconfirmed, as Bitfinex continues to work with “authorities” (it’s not clear which ones) to pinpoint what happened. But the details of the hack aren’t its only mystery. Burnt traders are now struggling to figure out something even more basic—who exactly is behind Bitfinex and where are those people located?

The exchange was handling $407.2 million in monthly trade volume before the hack, but there is precious little information about Bitfinex’s origins and founders.

This differs from exchanges of comparable size. Kraken, a US-based exchange, lists all of its team’s major members on its website, with photos and short bios. Coinbase, the first regulated bitcoin exchange in the US, maintains a community page for its users and has offered its founders up for interviews. Bitfinex has done none of these things. There are no “About Us” pages to peruse, or trade-press profiles of founders.

This has caused confusion

Read more ... source: TheBitcoinNews

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