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Their remaining assets after they were hacked. They gave everyone's account a 36% haircut and issued a kind of equity to "cover" the rest. I guess it ended up working for them because they're still around, but personally I wouldn't touch Bitfinex with a ten foot pole.

And I think I read that SVB's losses this week exceeded their cumulative profits since inception so it seems likely that even 100% ownership of the company wouldn't be valuable enough to make their customers whole.



It's not a good solution to give pieces of equity and/or claims on future cash distributions, but it sounds better than forcing to liquidate everything in a rush immediately.

Another way could also be to apply when you are withdrawing the money:

1st yr: 10% withdraw fee

2nd yr: 9% withdraw fee

3rd yr: 8% withdraw fee

etc

with the rate adjusting down every year.


Or, you could liquidate everything now and give people cash today that they could choose to put into treasuries themselves, earning a rate much better than your proposed lockup fee schedule. That sounds much faster and simpler and ultimately better for everyone.




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