Bitcoin : $72 million stolen from Bitfinex exchange in Hong Kong

It was a bad Tuesday for BitCoin traders, one of the leading BitCoin exchange Bitfinex has been hacked and $72 million were stolen due to security breach.

What Happend?

The Hong Kong based Bitfinex exchange was hacked on Tuesday due to a security breach which drained 119,756 bitcoins from its customer accounts. The sum is believed to represent a significant proportion of the quarrels bitcoin assets, bearing in mind than the stolen coins totalling 0.8 per cent of all bitcoins in circulation. The row is in the process of investigating the incident. Both trading and accounts were halted due to this.

Almost 20% plunged after the exchange was hacked.BitCoin_Plunge.jpeg

The Bitfinex theft represents the largest loss of bitcoins by an exchange since Japan’s infamous Mt Gox lost 744,408 BTC in early 2014 (worth $350m), a breach that would ultimately cause it to cease operations.

“It’s the biggest USD exchange, so outside China it’s the one that everyone has an account with,” said Antony Lewis, a bitcoin expert in Singapore. “It’s very liquid, folk can trade on margin, lots of daily volume.”

Read About BitCoin

 

Today we discovered a security breach that requires us to halt all trading on Bitfinex, as well as halt all digital token deposits to and withdrawals from Bitfinex.

We are investigating the breach to determine what happened, but we know that some of our users have had their bitcoins stolen. We are undertaking a review to determine which users have been affected by the breach. While we conduct this initial investigation and secure our environment, bitfinex.com will be taken down and the maintenance page will be left up.

The theft is being reported to—and we are co-operating with—law enforcement.

As we account for individualized customer losses, we may need to settle open margin positions, associated financing, and/or collateral affected by the breach. Any settlements will be at the current market prices as of 18:00 UTC. We are taking this necessary accounting step to normalize account balances with the objective of resuming operations. We will look at various options to address customer losses later in the investigation. While we are halting all operations at this time, we can confirm that the breach was limited to bitcoin wallets; the other digital tokens traded on Bitfinex are unaffected.

We will post updates as and when appropriate on our status page (Bitfinex.statuspage.io) and on the maintenance page. We are deeply concerned about this issue and we are committing every resource to try to resolve it. We ask for the community’s patience as we unravel the causes and consequences of this breach.

Source: http://blog.bitfinex.com/uncategorized/security-breach/

 

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