3 ms·

So... just pretending not to be insolvent and hope nobody goes to court to force them into insolvency?

• eximius 10y ago
  Their argument is that this haircut is pretty much what would happen if they went into insolvency voluntarily. But now they are opening an avenue to redeem themselves and stay operating. It makes some sense. I don't know whether I think it is a good idea, but it isn't without sense.
  • rbobby 10y ago
    Except of course with insolvency an independent 3rd party is put in charge and the board power's removed and a court overseas any liquidation of assets and repayment of creditors. Here on the other hand... the existing players all remain in place and whether or not there's any liquidation occurring is unknown. If auctioned I wonder what bitfinex as an entity would be worth? Or even just it's assets (like a functioning, somewhat, crypto-currency exchange application)? Frankly I'm a bit surprised. There can be significant legal risks involved in operating a business that you know is insolvent.