Cryptocurrency holders are all too aware of the hack affecting the Bitfinex exchange a few months ago. During this hack, the cryptocurrency exchange lost 120,000 bitcoin worth of currency. After reducing all user balances by roughly one-third, the company issued BFX tokens to all users as an IOU. All of those tokens have now been bought back to restore user balances once again.
Bitfinex Buy Backs Remaining Tokens
It has to be said, the Bitfinex exchange had been progressing slowly when it comes to redeeming the BFX tokens. All of these tokens were issued to users who had their account balances reduced after the hack in August of 2016. Moreover, the tokens have seen their value fluctuated between US$0.49 and US$0.89 ever since they were introduced. That said, Bitfinex vowed to buy back every token at a US$1 face value, which would be quite lucrative for those who managed to buy them at half a dollar or less.
Interestingly enough, Bitfinex officials suddenly announced they would buy back all tokens at their face value. A lot of users were shocked by this news, as it was unclear how the company had earned enough money to suddenly take this course of action. It appears the increased equity conversion – BFX tokens could be converted to a stake in the parent company for a long time – have allowed the company to make this decision a lot sooner than anticipated. Additionally, Bitfinex has seen “strong operational results”, which is a positive development.
As a result of this sudden development, all outstanding BFX tokens have been officially destroyed. Holders of the tokens have had their accounts topped up with US Dollar balances representing the number of shares they held previously. All things considered, it took 45 minutes to complete this process. It is good to see Bitfinex resolve this matter so quickly, even though the company had to reduce its internal reserves to make this happen.
All Bitfinex users who firmly believed the company would come through on its initial promise will be more than happy with the outcome. The Bitfinex hack was one of the largest in bitcoin history, yet it is also one of the few incidents resolved peacefully and in a timely manner. Recovering from a US$72m heist is not an easy feat for any company, that much is certain. After the initial 1% BFX token redemption in September of 2016, there were a lot of questions as to how things would proceed. Bitfinex has come through for its users and successfully erased any outstanding debt.
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