Bitfinex Hacked And Some Speculations

Yesterday afternoon, news has reported that one of the largest Bitcoin exchange, Bitfinex was hacked and up to this time, the site is still shut down. All trading transactions were halted due to a security breach that Bitfinex is still investigating and taking into account all the stolen Bitcoins from their users.

Bitfinex hack - hacked

Other news websites is still confirming whether the news was true and evidence was correct but Coindesk already reports confirmation from the Bitfinex that there are almost 120,000 BTC has been stolen which is equivalent to a more than 60 million USD. Bitfinex said on their status page that they are now co-operating with the authorities on the theft that is now being reported.

Cryptocoinsnews.com said that if all of the evidence were true, this will be the biggest theft in the Bitcoin world after MT Gox. There have been no details yet as to how was the hacking has come about and how was that staggering amount of Bitcoin has stolen.There have been a lot of posts or reports from the Bitcoin community, through social media and internet forums, that their Bitfinex account was emptied. A lot of them were devastated about the news and were hoping for the best on the affected accounts and that it would only have a minimal impact to Bitcoin. Some also recommended not to use an online Bitcoin wallet as they are not a hundred percent safe.

Some speculations

Some people in the Bitcoin community doubts that the Bitfinex is currently co-operating with some law enforcement. Mayax, a Bitcointalk forum member said that Bitfinex is running an illegal business since they do not own any license. 2nd of June this year, the U.S Commodity Futures Trading Commission released an order for Bitfinex to pay a $75,000 penalty due to offering illegal off-exchange financed retail commodity transactions and that they fail to get licensed with the US CFTC. So Mayax’s pointed out on what law enforcement are they going to co-operate with given that they are illegal.

Bitfinex hack law

Cryptocoinsnews also stated that Bitfinex have already been undergoing a number of technical difficulties with their data servers in the past few months. Two of which has led to unexpected halting of transactions in their website and has impelled an estimated $100 drop in the Bitcoin’s price each time. Bitfinex said they were resolving the problem as much as they could but did not specified any details during and after every issue. On our note to that issue, yesterdays hacking might be connected to the previous problems that the exchange have been encountering.

Speculations on the news say that this hacking has resulted to the drastic decline in the price of Bitcoin. Since the start of August this year, there has been a huge drop at more than a $100 in just three days. The cause could either be that a huge amount of Bitcoin was stolen or that there is an unlikely reaction from the Bitcoin enthusiasts to the reported hacking of a large exchange and stealing the coins of the users.

Recommended for you Bitfinex hack: Part 2/2 of the story

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