With the socialized losses initiative being set up by Bitfinex, many people feel this is the best way to keep the exchange afloat. But under Hong Kong law, it is not possible for the company to enforce this decision, ass there is no legal bankruptcy protection. It is still possible to open lawsuits against the company, and even force them to prove their solvency. Failure to do so would allow creditors to take control of the platform.

Bitfinex Can’t Force Anyone To Do Anything

The majority of

While some people may argue it is better to lose 36% compared to an entire account balance, there are those who feel otherwise. Technically speaking, Bitfinex stole 36% from every user, which it cannot do in a legal manner under Hong Kong legislation. Those users who wish to pursue legal action have every right to do so, albeit the outcome will not be guaranteed.

It is doubtful people will join forces to take legal action against the Bitfinex exchange, though. Handing over the exchange to

At the same time, this also poses the question as to whether or not we should let these companies get away with things scot-free. Bitfinex should be held accountable for what they have done, yet that is much easier said than done right now. Filing a petition could help, but only if enough people join this initiative against the exchange.

People have to keep in mind that these bail-ins – as that is exactly what has happened-  will not make the problems go away. Granted, Bitfinex is stable for now, but they have an enormous outstanding debt to their users. With confidence in the exchange shaken up, the recovery process will be a very long one either way.

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