There are a lot of questions that people need answers to before they should trust Bitfinex with any of their funds. Also, read to the end to see why US customers should not attempt to sell their BFX.
Is Bitfinex insolvent? That is, does Bitfinex currently owe people more money than the total value of all of its assets and holdings? This should be a simple yes or no question.
If Bitfinex is not insolvent, what possible grounds can there be for making less than full repayment to depositors of assets not directly affected by the theft like those who deposited USD or ETH?
Presumably Bitfinex must be liable for the theft to be insolvent. Does Bitfinex concede liability for the theft? If so, under what legal theory?
Were none of the accounts stolen from actually segregated? Or were the funds segregated, but Bitfinex is nonetheless liable due to providing an inadequate standard or care? Were some stolen funds segregated and some not? Does Bitfinex concede liability for all of them?
Does Bitfinex claim that unilaterally imposing a "haircut" on depositors or issuing them some other asset somehow cured its insolvency? Is there any credible argument that Bitfinex may have been insolvent due to the theft but no longer is?
Does Bitfinex claim that without any adversarial process, it can reduce its obligations to depositors whose funds weren't in segregated accounts below the full amounts? Does Bitfinex claim they have in fact done so?
If Bitfinex is insolvent, how can it make full repayment on new deposits? Why wouldn't these be fraudulent transfers subject to clawback?
Why is Bitfinex not committing fraud by accepting new deposits of funds in exchange for promises it knows it cannot legally satisfy? Why is Bitfinex accepting deposits if it is insolvent?
Is BFX a security under US law? If not, what is it?
If BFX is a security under US law, is it registered with the SEC?
If BFX is an unregistered security, is it illegal for US citizens to sell it per 15 USC 77(e)? If so, why does Bitfinex allow its US customers to offer BFX for sale, in apparent violation of US criminal law?
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Read my earlier Bitfinex articles such as this one or this one.
Read this Steem exclusive about how the regulations on banking violate rights, stifle innovation, and actually make it harder to fight crime.
Read this followup on the move to ban the $100 bill.
