Comment by ElevenLathe
Comment by ElevenLathe 2 days ago
IANAL but it seems like whoever is running Bitfinex should endeavour to make all the creditors whole in whatever medium their debt was denominated, according to seniority. So if they owe users X BTC and other creditors Y USD, and the BTC debts are senior, they should hand out the BTC to users regardless of its dollar value and, if there is any left, auction it off for the benefit of the (junior, in this scenario) USD creditors.
They could, but there's nothing requiring them to do so.
AFAIK the only crypto company who have been hacked (and there are a lot) and returned funds as BTC and not in dollars is, ironically, Mt. Gox. Users got repaid in Bitcoin 10 years after the fact. FTX bagholders were compensated ~120% in "equivalent value" dollars. Lost crypto was not repaid.