Following the theft of ~$70Mn worth of bitcoins on 2nd August, Bitfinex has calculated how much each customer would stand to lose: 36%.
Arriving at Assets of Each Customer
Bitfinex has cancelled all withdrawals, open orders and open funding offers. All financed positions were settled based on a published settlement price. Post this, the asset position of each customer has been finalized.
Bitfinex has finalized accounting for the losses incurred. After consultation, it has arrived at the conclusion that losses must be generalized across all accounts and assets.
Each customer will lose ~36%. The exact methodology on how this generalized loss percentage was arrived at will be published later.
Bitfinex expects to be back online within 24-48 hours with limited functionality and each customer will be able to view his account position online post that.
Tokens to cover losses
Bitfinex will issue BFX tokens to customers to record each customer’s discrete losses.
These tokens will remain outstanding until Bitfinex redeems them in full or until they are exchange for iFinex Inc’s shares (upon both customers’ request and Bitfinex acceptance).
The issuance of these tokens is meant to reassure customers that the losses are not permanent and Bitfinex intends to continue operations once it is relaunched.
Would trading of tokens be possible?
The BFX tokens represent unsecured debt obligations of Bitfinex – a commitment to repay money at a future point in time. If these tokens can be traded, it would offer a way out for customers who are in need of liquidity.
They could sell these tokens to speculators at a discounted value, thereby limiting their losses. Speculators too could profit, if they expect Bitfinex to revive operations and redeem these tokens.
The value at which these tokens trade would represent the market’s confidence in Bitfinex.