Bitfinex Users Lose $68M

Note from the CEO:  What?  WHAT????  “Socialized loss”????  Are you kidding? FintekNews has seen a lot but having all Bitfinex users (even ones not directly impacted) chip in for a loss seems absurd. So, if you were in a bank parking lot and it got robbed YOU would share their loss. “Socialized loss” indeed.

“After suffering a crippling hack earlier this week, Hong Kong-based bitcoin exchange Bitfinex said it may spread the loss among its users, including ones not directly impacted by the hack.

‘We are leaning towards a socialized loss scenario among bitcoin balances and active loans to BTCUSD positions,’ the exchange wrote in a blog post Friday. Bitfinex is still ‘settling positions and balances,’ and will provide more details soon, it said.

This week’s attack is potentially the second-largest on an exchange since Japan’s Mt. Gox, and could further erode confidence in the virtual currency. Bitfinex was the largest exchange for U.S. dollar-denominated transactions over the past month, according to bitcoincharts.com, and the attack sent bitcoin’s price plunging more than 20 percent.”

Read Full Article at Bloomberg