Bitfinex Scandal: Director admits management trading with access to customer position data

in bitcoin •  8 years ago  (edited)

Confessions of Bitfinex,

In an industry where Even the APPEARANCE of a conflict of interest is not acceptable. Management team owns and actively trades with 2 of the top 10 accounts. All while having access to sensitive insider customer data including every open customer position. Additionally, some suspicious shorts of considerable size were placed by top 10 accounts immediately before Bitfinex came out publicly regarding the hack.

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Director responds

The Director of Bitfinex has admitted he has traded bitcoins for years but has always assured everyone that he does NOT trade bitcoin on the platform for just these reasons.

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Community Response

The backlash has been massive. There have been cries of everything from conflict of interest to insider trading. There are now serious concerns over Bitfinex staff trading with insider access to sensitive customer positions.

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There will be more repercussions as this story develops.

What do you think the consequences of this discovery will be?

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  ·  8 years ago (edited)

In an industry where Even the APPEARANCE of a conflict of interest is not acceptable.

im not sure where you get this high standard for crypto exchanges.

im not an expert, but as far as I can tell, there are 0 regulatory standards. these are effectively wildcat banks operating in the open and answerable to no one.

im not even 100% sure that "insider trading" at least as its described here, would be illegal in the context of a crypto exchange.

it's a conspiracy of bankers

not a conspiracy, the are more than blatant about it. Some people need to be made an example of. You steal from a bank with a gun you get 20 years, Steal from a bank an amount 100x that of the gun robbery with a pen and you will probably see no to very little time in prison... That's good motivation to screw people though!

你好!

Ohhhh!! i will be following you as i love posts about bitfinex!!! :P done 2 myself but nothing like this! Awesome work :)

你好!

Accountability and trust a must in this business or all goes awry.

  ·  8 years ago (edited)

damnit @blocktrades really? how you gonna do me like that (jk... he put his big vote in literally 1 second before me)

I never trusted that shady exchange and I never will.

На самом деле, имея возможность безнаказанно использовать, как у нас в России говорят-административный ресурс, очень трудно видимо сдерживать себя от соблазна неплохо "заработать".Однако такие обвинения должны иметь серьёзное доказательство-иначе похоже на конкурентную войну.

I just can't wait until all online wallets suffer from the same "hacking" method.

DO NOT TRUST ONLINE FUNDS STORAGE

Potential conflict-of-interest and due-care issues. I think I hear the boiling of the hot-water they are about to get into.