On August 2, 2016, one of the largest digital currency exchanges of the world, Bitfinex, was hacked, and the stolen bitcoin amount was about $60m, according to the market price at the time. Although the blueprint of the attack is still unknown, the impact of the attack is extensive. This was the largest bitcoin theft since the Mt.Gox incident back in 2014. About 744,408 BTC worth of $350m was lost in the attack and put the company out of operation. Bitfinex loss is estimated around 119,756 BTC worth of $66m at the time, but it is not clear whether it was the full extent of the damage from the hack. Bitfinex has not yet published any official report following their internal investigation. The news of the hack made an instant effect on the market. The price dropped by 20% to reach as low as $480 USD.

Comparing these two charts from Bitfinex and BitStamp, we see a massive sell off of price and huge volume, particularly on the BitStamp chart - #HackRapeCandle. 

Aftermaths of the hack
Bitfinex uses the help of BitGo (a bitcoin wallet provider) to add a level of security on the customer transaction. The scenario suggests that, this particular structural design allowed the opportunity to attack. Bitfnex and BitGo combine to provide a multi-sig security for the users. Therefore, the security breach of the Bitfinex raised concern among the community about the vulnerabilities of the multi-sig structure.
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After the news of the attack was published, Bitfinex decided to create a market solution for its ware customers - after a loss of around 36% of Bitfinex’s customers holdings, warranted somewhat of a socially responsible, response to the situation. This lead them to the creation of a BXF Token, with a face value of US$1 to be issued to customers in proportion to their Hack related loss. The tokens give the customers the oppurtunity to exchange them for equity iFinex inc - Bitfinex’s Holding company on Bnktothefuture investment platform. 

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