[Isomatik]

Bitfinex could have moved to a cold storage system to make the bulk of their bitcoins secure, but doing so would have required them to register as a futures merchant and submit to additional auditing (which makes perfect sense, you can't expect to dump people's money into a shared pool only you have the books for). They chose to remain unregistered and use their multi-sig hot wallet system because the on chain transaction is enough for "proof of delivery". I'm sure someone could argue that qualifies as "The CFTC forced them to act insecurely", but Bitfinex gets zero sympathy from me for doing shit they profited from at the expense of their customers, while taking money from customers to socialize the loss.