Paying Users From Users’ Own Funds
Following the recent hacking incident, a recent update in their latest blog post has many users expressing their unhappiness.
“We are still working out the details so nothing is set in stone, however we are leaning towards a socialized loss scenario among bitcoin balances and active loans to BTCUSD positions.”
If they were to proceed with this settlement method, all users whether affected by the hacking or not would be seeing their Bitcoin Balances reduced. They are effectively putting the responsibility of footing the bill for the lost funds on all of the platform users.
So in essence, it does not matter whether or not your Account balance was drained. Whatever funds you have on would be used to pay off for the stolen coins.
This would seem to be one of the most absurd methods of ‘compensation’. While it is understandable that users who’ve had their account balances drained be compensated a lower rate, it makes absolutely no sense to reduce or use the balance of other unaffected users’ accounts.
Granted the fact that balances lost were not due to personal accounts being compromised, the move suggested by Bitfinex has made many start questioning their solvency following the hack.
BitGo Denies Breach To Servers
BitGo, the wallet provider which partnered with the exchange, has tweeted the following:
According to their blog post, Bitgo’s CEO states that “due to an active investigation, I can’t give you answers”.
Despite these however, many feel that BitGo , as the wallet provider for the exchange, should also be responsible for the incident.
It in indeed questionable as to how such a huge amount of coins could be moved so easily without raising an alarm.
