People who participated in Bitfinex margin lending and trading are probably going to take a haircut

in #bitfinex6 years ago (edited)

      Below is the latest update from Bitfinex regarding their possible plans

Update
05 Aug 2016 at 12:09 AM (UTC) 0 Comments   4  Likes  Share
   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. More details are to  follow tomorrow along with a FAQ answering most of the questions we have  been asked over the past couple days.           
http://blog.bitfinex.com/uncategorized/update/
It appears many who loaned USD so people can purchase BTC with margin trading are going to have to take the loss. Unfortunately, Bitfinex insurance does not cover it. Here is a copy of the reddit thread where Zane answers a few questions.
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    https://m.reddit.com/r/btc/comments/4w7o1j/itfinex_update_regarding_margin_funding_providers/


This is not good news for me, since I was one of the people who was margin lending both BTC and USD. Thats what I get for trying to make a few pennies and satoshis. Lesson learned.

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