Bitfinex CEO Provides Small Security Audit Update

Categories: CryptoNews

Bitfinex CEO Provides Small Security Audit Update

Ever since the Bitfinex exchange was hacked recently, there have been a lot of lingering questions regarding the future of the company. The issuance of BFX tokens alleviated a lot of concerns, even though their face value of US$1 has long gone. Bitfinex CEO Jean-Louis van der Velde sent out an email to all customers explaining the situation and looking towards the future.

Internal Bitfinex Investigation is Far From Over

What most affected

Bitfinex users are interested in, is finding out what has happened during the hack itself. Many people immediately pointed a finger of blame at BitGo, who provides cold storage solutions for the exchange. But the company has done nothing wrong from what we can tell, and an internal Bitfinex investigation was warranted.

So far, not too many details regarding this investigation are known. We do know the company decided to give all users a

haircut to recuperate most of the losses. A very controversial decision that still causes a lot of friction to this very day. Moreover, it is not a decision that would hold up in a court of law if someone were to challenge it.

It is evident for everyone to see Bitfinex still has a lot of work to do. While recovering the funds is a debatable decision, the company is moving forward despite the odds. The company also plans to redeem all BX tokens as fast as possible, either by restoring account balances, or by letting them be converted to iFinex Inc shares.

Bitfinex CEO Jean-Louis van der Velde stated:

“We have begun working with BnkToTheFuture, BFX Trust, and other groups to investigate methods of converting BFX tokens to Bitfinex equity. As you can imagine, because we operate a company with international customers in multiple countries this is not a straightforward process, but our goal is to give as many BFX token holders as possible the ability to participate. We are still in the early stages of this process and I ask for your patience as this develops.”

The security audit is still ongoing in collaboration with Ledger Labs. A revised security policy will be made public in the coming weeks. For now, no specific investigation details were revealed, as the investigation is still ongoing. More answers will – hopefully – be provided in the coming months.

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JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.