Re:I have made the decision to disband Hindenburg Research
by ElevenLathe on Thursday January 16, 2025 @01:25PM
(#42728931)
IANAL but it seems like whoever is running Bitfinex should endeavour to make all the creditors whole in whatever medium their debt was denominated, according to seniority. So if they owe users X BTC and other creditors Y USD, and the BTC debts are senior, they should hand out the BTC to users regardless of its dollar value and, if there is any left, auction it off for the benefit of the (junior, in this scenario) USD creditors.
Re:I have made the decision to disband Hindenburg Research
by fckgw on Thursday January 16, 2025 @04:17PM
(#42731022)
They could, but there's nothing requiring them to do so.
AFAIK the only crypto company who have been hacked (and there are a lot) and returned funds as BTC and not in dollars is, ironically, Mt. Gox. Users got repaid in Bitcoin 10 years after the fact. FTX bagholders were compensated ~120% in "equivalent value" dollars. Lost crypto was not repaid.
Re:I have made the decision to disband Hindenburg Research
by Workaccount2 on Thursday January 16, 2025 @06:02PM
(#42732033)
https://support.bitfinex.com/hc/en-us/articles/115003282929-...
Apparently they created a token that entitles you to the lost bitcoin should they be recovered.
I haven't seen any reporting on that. Bitfinex, the corporate entity, is receiving the coins recovered from the feds. It's up to Bitfinex how they device to dole out those funds, if at all.
When these things happen, often times exchanges will make their customers whole by giving back the monetary value of the coins at time of loss. It's very rare they repay them 1:1 in bitcoin.