Update 11 September 2016 1:23 AM EST
The following was announced on the 9th:
We are pleased to provide an update on our partnership with BnkToTheFuture. As we announced on August 22nd, we are coordinating with BnkToTheFuture to launch a Special Purpose Vehicle (SPV) that will allow the conversion of BFX tokens to equity stakes in iFinex, the corporate entity behind Bitfinex. We expect to release final details and terms on or before Sept. 15, 2016.
As previously reported, we have signed a letter of intent with BnkToTheFuture, an online investment platform, to provide an SPV through which BFX token holders can exchange their BFX for a beneficial interest in iFinex. Since then we have worked on adding functionality to facilitate these exchanges within the Bitfinex platform. Redemption of BFX for the beneficial interest in iFinex will be done at BFX’s face value of $1 US Dollar.
Participation in the SPV will be limited to holders of a minimum of 1,000 BFX tokens. It is principally designed to compensate Bitfinex customers who suffered losses resulting from a security breach that occurred against the company on August 2, 2016.
We are continuing to press forward with our plan to retire as many BFX tokens as possible through the equity conversion.
Going forward, our principal objectives are to raise new capital to help redeem outstanding BFX tokens and fund investment in future growth.
The following was announced earlier:
We are pleased to announce the redemption of 1.1812% of outstanding BFX tokens. This redemption was applied pro rata to all wallet balances on September 1, 2016
Update 22 August 2016 11:16 AM EST
We have formally signed a letter of intent with BnkToTheFuture, the online investment platform for financial innovation and technology investment opportunities, to provide solutions towards compensating customers with equity in Bitfinex.
BnkToTheFuture will be providing a Special Purpose Vehicle (SPV) through which qualifying BFX token holders can contribute their tokens in exchange for an equity interest in compliance with their individual jurisdictions. Further details will be released in future announcements.
Will “qualifying BFX token holders” include US residents I wonder?
Update 17 August 2016 3:25 PM EST
In addition to providing some general information regarding the hack and assuring everyone of additional security measures, Bitfinex addressed the efforts to compensate affected customers.
We are actively engaged with efforts to convert certain qualifying token-holders to shareholders of Bitfinex and to redeeming the remaining BFX tokens through a combination of new capital and earnings. We have re-enabled most of the features on the platform and are deeply grateful to our customers, who continue to trade with and help us rebuild our brand.
Update 10 August 2016 10:15 AM EST
Today, August 10th, 2016, at 16:00:00 UTC we will be enabling additional platform features as we continue to restore service after the incident on August 2nd. Exchange trading will be enabled for all currencies and pairs, while deposits and withdrawals will be enabled for BTC, ETC, ETH, and USD – with LTC and Tether to follow shortly thereafter.
16:00 UTC is 12:00 Eastern.
Update 8 August 2016 2:16 PM EST
Bitfinex PR man Zane Tackett is relaying that US accounts will not be able to trade the BFX token.
Update 7 August 2016 11:06 PM EST
The BFX token will not be tradable for US clients. This is a huge disadvantage.
Or they “may” be tradable? Unclear.
“The trading of BFX tokens may be restricted for US customers.”
Update 7 August 2016 8PM EST
Bitfinex.com is now live and read-only to check account balances.
The situation at Bitfinex is very fluid. I’m relaying the facts as I understand them as of writing. I’m not affiliated with Bitfinex and I do not speak for them.
The source for this information (as listed below) is from the Bitfinex status page and Zane Tackett’s reddit posts. Mr. Tackett is the Director of Community & Product Development at Bitfinex.
Facts as of 6 August 2016 at 4:50 PM EST
•119,756 BTC was stolen from Bitfinex on 2 August 2016.
•The value of the BTC stolen at that time was around $60 million.
•Losses will be socialized across all account values.
•Accounts will be worth 36.067% less than their pre-hack levels.
•For example, even though no Ethereum (ETH) has been reported stolen, ETH balances will suffer 36.067% losses.
•Put differently, if someone had 1 BTC pre-hack, that account balance will now be .63933.
•If someone had 100 ETH pre-hack, that account balance will now be 63.933 ETH.
•BFX Tokens will be issued.
•BFX Tokens *could* be exchanged for equity in iFinex Inc. (Bitfinex)
We are actively discussing various strategic options with numerous potential investors as part of our strategy to fully compensate our customers. Such discussions, however, are in early stages and will likely take time to play out. In the meantime, In place of the loss in each wallet, we are crediting a token labeled BFX to record each customer’s discrete losses. Tokens will be distributed without release or waiver. The BFX tokens will remain outstanding until redeemed in full by Bitfinex or possibly exchanged—upon the creditor’s request and Bitfinex’s acceptance—for shares of iFinex Inc. We are still sorting out many details on this; we will post further updates in the coming days.
•The exchange will come back on within 24-48 hours. (This announcement was made at 11:02 AM Eastern on 6 August 2016. So 24 hours would be 11:02 AM on Sunday 7 August and 48 hours would be 11:02 AM on Monday 8 August.)
•My understanding is that when users can login to Bitfinex, it will only be to check account balances. Initially no trades or withdrawals will be available.