On August 2, 2016, Bitfinex, a prominent cryptocurrency exchange, was hacked, resulting in the theft of 119,756 BTC, worth approximately $72 million at the time. The hack was significant, not only due to the large amount of Bitcoin stolen but also because of the exchange's decision to socialize the losses across all customers, resulting in a 36% haircut. In an effort to mitigate the losses, Bitfinex created BFX tokens, which represented the debt owed to customers. However, in a surprising turn of events, Bitfinex was able to pay back all customers within 8 months, thanks in part to the creation of the BFX tokens. The hack and subsequent token creation have been the subject of controversy, with some critics arguing that the socialization of losses was unfair to customers. Additionally, the connection between Bitfinex and Tether, a stablecoin issuer, has raised concerns about the exchange's financial stability. As the cryptocurrency market continues to grow, the question remains: what measures can be taken to prevent similar hacks and ensure customer funds are protected?