The Hong Kong based cryptocurrency exchange that suffered the second worst bitcoin theft in exchange history, is now pushing towards a solution that looks like a bail in but feels like a letdown. The company released an official statement on August 6th, 2016 stating that it will spread the losses from the hack equally among its users. The proposal – or imposition to be more accurate – lacks detail and is clearly not a satisfactory solution for many reasons.
Bitfinex Bail-In Facts
The absence of details in its proposal show the weakness of the bail-in plan implementation. There is no way of knowing how Bitfinex arrived to the loss ratio that it will impose on its customers. The following are the facts that have been established and can be inferred so far from Bitfinex’s calculation:
- Client accounts will lose 36.067% of their funds once they are back online for trading.
- Every account holder will receive a token in exchange for the loss of funds.
- Bitfinex will let its customers…