{"id":2737,"date":"2016-08-03T00:00:00","date_gmt":"2016-08-03T04:00:00","guid":{"rendered":"http:\/\/silverlaw.lawblogger.net\/blog\/cryptocurrency-exchange-bitfinex-suspends-operations\/"},"modified":"2017-12-22T14:14:13","modified_gmt":"2017-12-22T19:14:13","slug":"cryptocurrency-exchange-bitfinex-suspends-operations","status":"publish","type":"post","link":"https:\/\/www.silverlaw.com\/blog\/cryptocurrency-exchange-bitfinex-suspends-operations\/","title":{"rendered":"Cryptocurrency Exchange Bitfinex Suspends Its Operations"},"content":{"rendered":"<\/p>\n

Just two months after being sanctioned by the U.S. Commodity Futures Trading Commission<\/a> (CFTC), Hong Kong-based cryptocurrency exchange Bitfinex — one of the largest Bitcoin exchanges in the world — has now halted all its Bitcoin trading operations until further notice, claiming it has suffered a security breach.\u00a0 According to published reports, the alleged security breach involved the theft of $65 million worth of Bitcoin from Bitfinex users.\u00a0 News of the alleged theft has caused the price of Bitcoin to plummet worldwide by more than twenty percent.<\/p>\n

In June 2016, the CFTC issued an Order<\/a> sanctioning Bitfinex for offering illegal off-exchange financed retail commodity transactions in Bitcoin and other cryptocurrencies.\u00a0 In addition, the Order cited Bitfinex as having failed to register with the CFTC before engaging in any commodity transactions.\u00a0 The Order required Bitfinex to pay a $75,000 civil monetary penalty and to cease and desist from future such violations.<\/p>\n

According to the CFTC, Bitfinex permitted its users to borrow funds from other users on the platform so they could trade Bitcoins on a leveraged, margined, or financed basis.\u00a0 However, the CFTC alleged that Bitfinex did not actually deliver those Bitcoins to the traders who purchased them and instead held the Bitcoins in deposit wallets that Bitfinex itself owned and controlled.<\/p>\n

Continue reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Just two months after being sanctioned by the U.S. Commodity Futures Trading Commission (CFTC), Hong Kong-based cryptocurrency exchange Bitfinex — one of the largest Bitcoin exchanges in the world — has now halted all its Bitcoin trading operations until further notice, claiming it has suffered a security breach.\u00a0 According to published reports, the alleged security […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[600],"tags":[],"class_list":["post-2737","post","type-post","status-publish","format-standard","hentry","category-commodities"],"yoast_head":"\nCryptocurrency Exchange Bitfinex Suspends Its Operations — Securities Arbitration Lawyers Blog — August 3, 2016<\/title>\n<meta name=\"description\" content=\"Just two months after being sanctioned by the U.S. Commodity Futures Trading Commission (CFTC), Hong Kong-based cryptocurrency 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