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RE: Another huge problem with Bitfinex's bail in

in #bitcoin8 years ago

There will be lawsuits. Bitfinex's unilateral, unexplained decisions have ensured that representatives of pretty much every class of customer will sue them. Though, to be fair, they probably would have gotten sued by lots of people pretty much no matter what they did, assuming they can't get the stolen funds back.

Sadly, lawsuits are a terrible solution. Lots of money will go to lawyers and everyone will lose.

But, to be clear, they will definitely happen. Every customer who was not directly affected by the loss but who is finding Bitfinex unwilling to pay them what they are owed has an incentive to be first to sue. Bitfinex has no excuse for not paying them unless they concede they are insolvent, in which case all kinds of legal proceedings are unavoidable.