Hong Kong-based bitcoin exchange Bitfinex says it may ‘socialise loss’ for USD72 million hack

Hong Kong-based crypto-currency exchange Bitfinex, from which hackers stole about USD72 million (HKD558 million) worth of bitcoin this week, said on Friday that it expected to “socialise” the losses among bitcoin balances.

In dollar terms, the theft of the 119,756 bitcoin revealed last week was the second-biggest security breach ever of a digital currency exchange. The theft accounted for about 0.75 percent of all bitcoins in circulation.

“We are still working out the details,” Bitfinex said on its website, “however, we are leaning towards a socialised loss scenario among bitcoin balances and active loans to BTCUSD positions.”

The exchange, which is known for its liquidity in the US dollar/bitcoin currency pair, did not explain what that would entail.

It has said previously it would settle accounts at an exchange rate of USD604.06, the midpoint of the bid and ask on Aug. 2, 2016 at 18:00:00 UTC.

The price of bitcoin plunged more than 23 percent on Tuesday when news of the hack became public, trading as low as USD465.28 on the BitStamp platform BTC=BTSP. It was trading at USD569.84 on Friday.
 


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