Following an alleged hack of around 120,000 bitcoins, now worth around $160 million, Bitfinex announced they were to slowly pay them back through profits by converting the 120,000 bitcoins into a BFX token which were to gradually be redeemed.Around the end of January, just five months after they were hacked back in August, Bitfinex stated half of the tokens had been redeemed.A month or two latter they announced all of the tokens had been redeemed.Considering the stupendous amount in question, many were wondering where the funds came from to so quickly pay back such huge sums.When Bitfinex was asked, they said it was through token buybacks and conversion to equity in Bitfinex’s shareholdings.Today, a twitter account that calls itself “Bitfinex Whistleblower,” has publicly stated the funds were redeemed through an accounting gimmick.Bitfinex operates Tether, a currency that is meant to be pegged to the dollar at a 1:1 value and on the surface appears to be backed by dollars.However, according to Tether’s terms and conditions: “Tethers are not money and are not monetary instruments.

They are also not stored value or currency.There is no contractual right or other right or legal claim against us to redeem or exchange your Tethers for money.phoenix fund bitcoinWe do not guarantee any right of redemption or exchange of Tethers by us for money.” Those terms probably wouldn’t fly in a court of law since Tether’s website loudly says on its front-page that “every tether is always backed 1-to-1, by traditional currency held in our reserves.bitcoin atlantisSo 1 USD₮ is always equivalent to 1 USD.” However, the whistleblower says Bitfinex has increased the supply of tethers from 6 million to 65 million and have used this 65 million to pay back BFX tokens, shifting the debt from them to the tether holders, according to the whistle blower, who further says: “Since tethers are not legally redeemable per their TOS, they can choose to redeem these at their leisure or simply not at all.bitcoin logiciel

USDT/Tether are not legally their liabilities per the terms.” Bitfinex is currently undergoing through some banking difficulties after being cut off from Wells Fargo, forcing them to stop fiat deposits and withdrawals.litecoin plnBitcoin trades at around $100 premium on the exchange, with most other digital currencies trading at a premium too.ethereum data fieldTether’s price has fallen, diverging from its USD peg.bitcoin heist updateBitfinex ensures their high frequency trading platform is as fast as possible with Cloudflare's Load Balancing.ethereum coin worthBitfinex is the world’s largest and most advanced bitcoin trading platform.bitcoin miner hosting europe

Offering a full-featured spot trading platform for the major cryptocurrencies such as bitcoin, ethereum, litecoin, monero, zcash, and more, hundreds of millions in transaction volume go through Bitfinex's platform every month (almost $735mm in transaction volume in the 30 days up to March 1, 2017).dogecoin cryptoAs a high-frequency, financial trading platform, Bitfinex has two key priorities: speed and security.Speed is crucial for Bitfinex users because they need to have the latest cryptocurrency prices available to rapidly trade throughout the day.To ensure users get this information, Bitfinex is focussed on providing the fastest User Interface possible.To do so, Bitfinex set up a series of distributed front-end servers, which act as a user’s first point of contact with their platform.However, this solution lead Bitfinex to a different challenge: these frontend servers would occasionally get overwhelmed by spikes in traffic, and as a result, users would experience slow, degraded performance.

Bitfinex thus needed a way to evenly distribute traffic across these servers to avoid overload and ensure users were enjoying the fastest speeds possible.Security is a constant focus for any financial institution to ensure.For a web-based platform like Bitfinex, a breach in security could mean service down time, which is especially problematic for a high-frequency platform.“Bitfinex is a highly available, high frequency trading platform,” explained Adam Chamely, Developer at Bitfinex.“ If customers can’t access our platform, they can’t trade.If they can’t trade on our platform, they’ll go elsewhere; we lose them as a customer and we lose their trading volume, which puts us in a worse position and means we could lose even more.” Bitfinex had engaged a previous security provider, but was beginning to grow frustrated with a constantly changing pricing structure.“I’ve known about Cloudflare for quite a while, and other team members had used the service, so we decided to see if they could help solve our challenge,” said Chamely.

“We considered rolling out our own solution, but at the end of the day Cloudflare’s solution was more attractive: an existing platform that worked and allowed us to focus on developing our own offerings instead of reinventing the wheel.” Bitfinex now uses Cloudflare’s Load Balancing to intelligently distribute traffic across their front-end servers.Chamely noted, “We use Cloudflare Load Balancing to split up traffic among our front-end servers to increase our network capacity and ensure these servers are healthy.We also appreciate that Failover seamlessly routes traffic to a healthy server in case that server goes offline.Both of these ensure the high availability and uptime we need in our platform.” Bitfinex also now enjoys security from Cloudflare’s advanced suite of security features.With IP reputation data from over 6 million sites on its network, Cloudflare’s WAF (Web Application Firewall) blocks malicious requests from touching Bitfinex’s servers.