Yesterday was pretty crazy for me. Probably was for you, too. I didn’t sleep much. Here’s my actions:
Bought BTC @ ~777 to close out my short that was opened at ~797, making a nice tidy 2.5% before fees.
Saw the LTC craziness going on between 22:30 and 22:45. Looked like a snowball’ed margin long call and a snowball’ed margin short call, at first. Placed a limit order at ~17 for LTC, in case some big long popped and crashed it again or the market turned heavily downward as a result. This is all I thought was going on–at first, at least.
Come back to discover both that my order had been filled, and that something was seriously wrong.
So I did two things: sounded the alarm, and tried to withdraw my LTC. My LTC withdrawal didn’t go through after about 40 minutes, meaning the hot wallet was empty. Went to sleep at about 4 AM, set an alarm for 7 AM EST. Had trouble falling asleep for obvious reasons–most of my capital is in Bitfinex.
Slept through my alarm, woke up at 11 AM. At least I got a good night’s fretful sleep. Woke up to discover my withdrawal had been processed, my LTC was on BTC-e. Sold the LTC, bought BTC, moved it back to Bitfinex, sold it at an arbitrage profit there. LTC sold at ~20.2 is an 18.8% profit. Bought the BTC for ~771. Sold on Bitfinex for ~778 for .9% profit.
I’m not sure if I should have been credited with the LTC, or if it is right for me to take those profits. If Bitfinex contacts me, I will discuss the situation with them. I don’t expect them to get in touch–buying at 17 when the market is in the upper 19s isn’t THAT crazy. However, it does make me wonder how they set about resolving the situation. The fact that my LTC got through implies that Bitfinex is eating a lot of the costs of this event. I’m happy that they’re standing up and accepting financial responsibility for the problem–I just hope that every legitimate customer ended up receiving the appropriate amount of funds back. From how the BitcoinTalk thread looks so far, Giancarlo and Raphael seem to have things under control–customers keep posting, and then PM’ing them, and then they seem to be sorting things out. I am almost certain they are paying for it out of their earnings, which gives me a huge amount of respect for them. A shadier operator would have seen this as a good opportunity to cut and run. I’m certain that the events of last night cost them a six-figure number. Their profits have been estimated at seven-figures per month, luckily.