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RE: Questions Bitfinex must answer

in #bitcoin8 years ago

It's a pretty safe bet that Bitfinex is insolvent... and should be forced into bankruptcy liquidation proceedings by Hong Kong authorities.

Unfortunately, it's abundantly clear that regulators world wide have decided that they do not have the resources to protect people who choose to do business in the underground economy.

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I'm not so sure. That would only be true if Bitfinex is liable for the theft. I believe at least most of the funds were in segregated accounts and had been legally delivered to the customers. If that's correct, then Bitfinex would only be liable if they didn't provide the legally required standard of care. It's not clear, at least to me, that they didn't.