Hacker News Reader

BitGo announced two days ago that their insurance policy was discontinued in January 2016. They claim their customers were informed of this.[1] Customers are claiming they were not.

[1] https://blog.bitgo.com/bitgo-secures-first-ever-comprehensiv...

Bitfinex was started with the leaked Bitcoinica source code, after it had been hacked. The founders openly talk about trading at their own exchange. I don't know how much more bad light could make a difference. People still trade there because that's where the liquidity is, just like they traded MtGox knowing full well the account database had leaked, it regularly kneeled under pressure etc. That first mover advantage is a problem in the Bitcoin space but maybe that will change with time.

This is more important than the 36% haircut (and the likely lawsuits that will follow).