What happened to Bitfinex?

Can you please elaborate on the recent events surrounding Bitfinex, the popular cryptocurrency exchange? There have been reports of a major hack, legal disputes with the New York Attorney General's Office, and a subsequent loss of user trust. How did this all unfold, and what impact has it had on the platform's operations and the wider cryptocurrency market? Additionally, what measures has Bitfinex taken to address these issues and restore user confidence?