EXPLOITING Bitfinex For 100% FREE Bitcoin Cash

Bitfinex made a CRITICAL MISTAKE in their accounting policy regarding the upcoming Bitcoin Cash Hard Fork.

In their announcement, they detailed their token distribution methodology as the following:

• All BTC wallet balances will receive BCH
• Margin longs in BTC/USD and margin shorts in XXX/BTC will not receive BCH
• Margin shorts in BTC/USD and margin longs in XXX/BTC will not pay BCH
• BTC Lenders will receive BCH

So, the following is what we will do.

Before the fork:

• Short X amount of BTC on margin; and
• Buy X amount of BTC on wallet and send X amount of BTC to your paper/hard wallet.

Effectively, you hedged your position.

After the fork, your short position of X BTC remains, but your paper/hard wallet contains X amount of BTC and X amount of BCC.

• Move your BTC from paper/hard wallet into Bitfinex, and claim your margin position.

Now you have X amount of free BCC in your paper/hard wallet.

FAQ:
Q. How does this work?
A. It works because your short position of BTC pre-fork will NOT leave you with short positions of BTC and BCC after the fork.

Q. Why do I need to move BTC out of Bitfinex?
A. If your Bitcoin stays in Bitfinex, they will leave you with less than 1 BCC for every BTC.

• i.e. "Due to the net amount of BTC committed in margin positions at the time of the fork, the above methodology may result in Bitfinex seeing a surplus or deficit of BCH. As such, we will be resolving this discrepancy in the form of a socialized distribution coefficient. "