Most of you may be familiar with the term “Taking one for the team”. Bitfinex is considering putting the idiom to good use after the recent security breach which left the platform poorer by $72 million.
According to recent reports, Bitfinex is looking into the option of socializing the losses among its users. This means, the platform users whose digital currency balance wasn’t affected by the hacking incident will be paying a small amount from their deposits to compensate for the losses incurred by those who lost their bitcoins to the hackers.
Bitfinex, in a recent update on its blog states,
“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. The numbers being quoted are erroneous as nothing has been decided as of yet and we are still in the process of settling positions and balances.”
The cryptocurrency exchange has reported a loss of over 119,756 bitcoins during the hacking incident. The company which has been using BitGo’s wallet service is said to have cleared BitGo of any shortcomings on its part that may have resulted in the security breach.
Currently, Bitfinex is left with two options. The first one is to let the customers who lost their bitcoin deposits during the breach bear all the losses and the other one is to spread the losses across all Bitfinex customers. The platform seems to be opting for the latter. However, there is another option where Bitfinex bears all the losses and compensates its customers, which seems to be highly unlikely at this point.
There are many questions regarding the hacking incident that are not answered yet. The customers have been patient so far, expecting the company to respond to their questions soon.
Ref: Bitfinex Blog