Customers take a 36% haircut on their bitcoin wallets as Bitfinex socializes losses post hack

Customers of hacked bitcoin exchange Bitfinex (BTXNA, Inc.) are set to take a serious haircut on their bitcoin holdings after the company announced it would be taking 36 percent of the balance of their bitcoin wallets to offset losses following the hack of the company early August.
The 36 percent figure represents a generalized loss percentage of 36.067 percent, which was the total of the 119,756 bitcoin stolen from the exchange – at the time it occurred, it was valued at $65.6 million.
‘In a later announcement we will explain in full detail the methodology used to compute these losses,’ the company said in a statement.
Although the 36 percent will still be taken, the exchange said that in order to compensate their customers, they were planning on issuing a new token on the Omni protocol with a shortcode ‘BFX’ that will be equal to the amount each customer as lost. Those tokens are being handed over without release or waiver, will be tradable, and will remain outstanding until repaid in full by Bitfinex or exchanged for shares in the company itself.

This post was published at Silicon Angle on Aug 9, 2016.

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