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The price of bitcoin has dropped dramatically after hackers managed to steal more than $65 million-worth of the digital currency from a Hong Kong exchange.
BitFinex, one of the largest bitcoin exchanges, halted all trading on Tuesday evening and alerted its users to a security breach.
“Wij are investigating the breach to determine what happened, but wij know that some of our users have had their bitcoins stolen. Wij are undertaking a review to determine which users have bot affected by the breach,” the company said ter a blog postbode. “The theft is being reported to-and wij are co-operating with-law enforcement.”
The company has confirmed that 119,756 bitcoin were stolen – $65 million at current prices.
It’s not yet clear what the nature of the security breach is, or who is responsible for the attack.
It’s a fat hack – the second-largest everzwijn successful confirmed attack on a bitcoin exchange. Back te 2014, MtGox, then the largest exchange, collapsed after $460 million ter bitcoin wasgoed stolen by apparent hackers.
Ethereum – an alternative digital currency – has recently bot rocked by an attack on the DAO, a decentralised organisation that ran on its blockchain. The attacker managed to obtain $50 million-worth of Ether, but the community effectively split the currency ter a “hard fork” to prevent them from being able to use it.
The attack of BitFinex will worry bitcoin users because it’s one of the fattest exchanges out there: It predominates bitcoin-USD trading, making up 50% of total volume. It also disrupts what has bot a bullish year for the currency thus far. Spil recently spil January , bitcoin wasgoed trading at just overheen $200 – less than a third of its $740-odd June highs.
“With [BitFinex] users funds secured using multisignature technology te partnership with BitGo – a loterijlot more is at stake for the backbone of the Bitcoin industry with its stalwarts and prided tech under fire,” CryptoCompare CEO Charles Hayter said. “With uncertainty comes volatility – with the block prize halving out of the way there is no clear path for bitcoin especially with divisions reappearing on the scaling debate. This BitFinex hack muddies the waters again for Bitcoin and opens up raw wounds ter echoes of Mt Gox. “
Bitcoin is attempting to shed the reputation for danger and volatility that incidents like MtGox helped create – and BitFinex’s hack could be a significant setback.
Here’s the utter blog postbode from Bitfinex:
Today wij discovered a security breach that requires us to halt all trading on Bitfinex, spil well spil halt all digital token deposits to and withdrawals from Bitfinex.
Wij are investigating the breach to determine what happened, but wij know that some of our users have had their bitcoins stolen. Wij are undertaking a review to determine which users have bot affected by the breach. While wij conduct this initial investigation and secure our environment, bitfinex.com will be taken down and the maintenance pagina will be left up.
The theft is being reported to-and wij are co-operating with-law enforcement.
Spil wij account for individualized customer losses, wij may need to lodge open margin positions, associated financing, and/or collateral affected by the breach. Any settlements will be at the current market prices spil of Legitimate:00 UTC. Wij are taking this necessary accounting step to normalize account balances with the objective of resuming operations. Wij will look at various options to address customer losses zometeen ter the investigation. While wij are halting all operations at this time, wij can confirm that the breach wasgoed limited to bitcoin wallets, the other digital tokens traded on Bitfinex are unaffected.