Bitfinex reimburses first hack victims: Promise kept?

2016 has re-established Bitcoin’s status as a formidable digital innovation, capable of replacing traditional methods of payment. After being crippled by numerous controversies, the cryptocurrency has slowly gained traction with numerous applications. With the adoption of the currency on the rise, more positive news came this week with Bitfinex’s latest decision:

Bitfinex reimburses first wave of customers

On 1st September, the Hong Kong bitcoin exchange revealed it had purchased more than 1% of the blockchain debt tokens it issued to users in August as a way to pay them back for losses it incurred in a debilitating hack. While a small step to recovery, analysts were largely positive about this move. The exchange announced that it would purchase the tokens at an above-market value of $1 each. This is roughly double the market value when the redemption took place. Since issuance, the value of tokens has fluctuated, but never approached the $1 mark promised by the exchange. This sparked prominent concerns, as Bitfinex have to seek to buy back its own liabilities at a discounted market rate.

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